SoFi

The office of Federal Student Aid provides over 9.9 million college students with more than $120 billion in grant, work-study, and student loan funds each year to help pay for college or career school. However, there are situations where students can lose their financial aid.

Students will want to consider how their grades affect financial aid to avoid having federal college aid taken away. Generally, you’ll need to make satisfactory academic progress (SAP) each term to continue receiving federal financial aid, but you may be able to regain lost aid by filing a financial aid appeal.

If you’ve received aid through private scholarships or grants, you may need to meet their minimum requirements to remain eligible for gift aid. Private lenders may also have minimum GPA requirements, but these vary by lender.

Types of Financial Aid

There are many types of financial aid available to college students from the federal government, states, schools, and private sources. This funding can be used to cover most higher education costs, such as tuition and fees, room and board, and books.

Sallie Mae’s 2025 “How America Pays for College” survey found that while parent income and savings covered nearly 50% of college costs during the 2024–25 academic year, families still heavily relied on financial aid and federal loans to cover the other half.

Grants & Scholarships

College grants and scholarships are a form of financial aid that can help make college more affordable because they don’t usually need to be repaid. The U.S. Department of Education, colleges, and universities award an estimated $256.7 billion in grant and scholarship money to students each year. The Sallie Mae survey found that scholarships and grants covered approximately 27% of school costs for families in 2024-25.

The biggest differences between college grants and scholarships are where the funds come from, eligibility requirements, and the application process. Grants are typically given based on financial need while most scholarships are merit-based. Scholarships may be awarded to students based on their academic or athletic achievements, extracurricular activities, fields of study, and more.

💡 Quick Tip: You can fund your education with a competitive-rate, no-fees-required private student loan that covers up to 100% of school-certified costs.

Federal Work-Study

Federal Work-Study is a form of financial aid that offers students funds via part-time employment on campus. Several factors determine whether a student is eligible to participate in the Federal Work-Study program, including their family’s income and the student’s enrollment status at the school.

As with other forms of federal financial aid, a student’s grades affect their eligibility. Students are expected to make SAP, which is a school’s standard for satisfactory academic progress toward a degree or certificate.

Student Loans

Student loans can either come from the federal government or private lenders. To qualify for a federal student loan, students must demonstrate financial need, fill out the Free Application for Federal Student Aid (FAFSA®), be enrolled in an eligible degree or certificate program at least half-time, and maintain SAP.

Another option is to take out a private student loan; however, this is generally only considered after all other options have been exhausted. Private student loans may be more expensive than federal student loans and don’t offer the same borrower protections, such as access to income-driven repayment and forgiveness programs. Private lenders can set their own terms and repayment plans so you should read the loan terms closely before making any borrowing decisions.

Recommended: How to Pay for College

How Grades May Affect Financial Aid

If you find yourself struggling in school, you may be wondering how grades affect financial aid.

State and federal financial aid, such as grants, loans, and work-study, require students to maintain satisfactory academic progress while working toward a degree. Academic performance is evaluated based on each school’s individual policy.

Your school’s policy will tell you what grade point average (GPA) or equivalent you must maintain, the minimum number of credit hours you need, the required pace of course completion, maximum time frame allowed, and more.

As far as how grades affect financial aid, federal regulations state that students must maintain a 2.0 cumulative GPA, or a grade of “C”, on a 4.0 scale. Additionally, students must complete at least 67% of cumulative credits attempted, and progress through their undergraduate program no longer than 150% of the published length of the educational program.

Private scholarships and grants may have their own academic requirements. Dropping below the minimum requirements could result in termination of the scholarship or grant money for the following term but typically does not require repayment. If you receive a scholarship or grant, make sure you read the fine print to see if your grades affect your financial aid.


💡 Quick Tip: Parents and sponsors with strong credit and income may find more-competitive rates on no-fees-required private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

Do Grades Affect Private Student Loans?

Typically, no. However, each lender has different eligibility criteria for student borrowers. Similar to other types of loans, private student loans are given based on factors including your (or you cosigner’s) finances and credit history and, depending on the lender, there may or may not be a GPA requirement. Private lenders usually care more about your ability to repay the loan than your grades, but again, each lender is different.

If you’re interested in a private student loan, check with the lender to see if there are any student loan GPA requirements before making your decision.

Recommended: I Didn’t Get Enough Financial Aid: Now What?

Regaining Lost Financial Aid Due to Low Grades

Have you lost financial aid due to low grades? You may still be able to get it back. Losing financial aid due to low grades means you aren’t satisfying your school’s SAP requirements.

Visit a Financial Aid Office

One of the first things to do after losing financial aid due to low grades is to visit your school’s financial aid office to discuss your options. Your financial aid office can help you formulate a plan to improve your grades so that your financial aid can be reinstated.

Make sure to ask about the requirements for the financial aid that you are or were receiving and find out if you’re able to file a financial aid appeal.

File a Financial Aid Appeal

You can file a financial aid appeal, or an SAP appeal, if your school allows it and if the poor performance was due to circumstances outside of your control. There must be a link between poor performance and the special circumstance. Some acceptable situations include:

•   Death of a relative

•   Severe personal injury or illness

•   Other special circumstances determined by the school

If you can prove your lower grade directly correlates to one of these situations, then it may be possible for you to regain your financial aid. Check your college’s website for directions and for more information on filing a SAP appeal.

The Takeaway

Your grades do affect your financial aid and federal student loans. Generally, if your cumulative GPA dips below a 2.0, you will no longer be considered to be in good academic standing. However, if your low grades are due to extenuating circumstances, you can try to appeal. Other forms of financial aid, like private grants and scholarships, may also have their own set of academic requirements.

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

Can financial aid be taken away for bad grades?

It’s possible. You must remain in good academic standing to keep any type of state or federal financial aid, such as grants, loans, and work-study. Private scholarships and grants may also have their own set of requirements to keep any gift aid.

While private lenders typically don’t have any student loan GPA requirements, each lender is different.

Do you get more financial aid if you get good grades?

Most federal financial aid programs do not take your grades into consideration when determining how much financial aid to give. However, bad grades can hurt your federal financial aid availability.

Good grades are even more important to recipients of merit scholarships and some grants but there are scholarships that do not take grades or GPA into consideration.

Will my FAFSA be affected if I fail a class?

As long as you meet your school’s definition of Satisfactory Academic Progress (SAP), one failed class won’t affect your financial aid package.

Photo credit: iStock/harunhalici

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-Q425-033

When you start paying for your own food in college, one of the biggest shocks is just how expensive it can be — especially these days, due to years of high inflation. But what if you could save money in college without settling for boring boxed mac and cheese? While it can be a challenge to keep up the same standard of living as when you were living at home, you don’t have to completely alter your lifestyle. What follows are some essential shopping and dining hacks that will help you eat well during your student years without breaking the bank.

How Much Do College Students Spend on Food?

When you consider how much college students spend on food these days, it’s easy to see why you may be chronically short on cash. The average cost of food per month for a college student is $672, according to the Education Data Initiative. To break that number down further: Students spend, on average, $410 a month eating off-campus and $263 a month on meals cooked at home.

Of course, how much a student spends on food in college will depend on where they go to school (prices are higher in New York City than Florence, Alabama, for example), and how much they eat out versus cook at home. You might spend significantly more than the average, or you may be able to get away with spending a lot less.

💡 Quick Tip: You can fund your education with a competitive-rate, no-fees-required private student loan that covers up to 100% of school-certified costs.

11 Ways to Save Money on Food in College

Despite rising food costs, there are ways to cut your food bill and still eat well. What follows are 11 tips for how to save money on food in college.

1. Plan Out Your Meals

Living on a budget and saving money in college comes down to good planning. Once a week (maybe Sunday morning), sit down and decide what meals you’ll eat during the week. There are a lot of meal-prepping and budget recipe blogs online that can give you ideas. Once you know exactly what you’ll be cooking, you can come up with a detailed grocery list of everything you’ll need. As long as you don’t stray from the list, and you won’t end up exceeding your college student grocery budget.

Of course, things may come up at the last minute, but do your best to work your way through the meal plan.

2. Create a Food Budget

Learning how to budget in college is a critical part of having an independent and successful college experience. Here’s how to come up with a college student grocery budget:

•   Add up your total monthly income. Include any money coming in from a part-time job, parental support, loans, and other financial aid.

•   Subtract your essential living expenses. For example, this might include housing, utilities, internet, transportation (such as gas, train tickets and bus fares), and insurance (such as health, rental and auto).

•   Decide on a maximum college student food budget. Based on your findings, decide how much you can realistically spend on food each week, including groceries and eating out.

•   Track your food spending. To make sure your food spending stays within budget, you might start tracking your food spending with an app on your phone. Some budgeting apps, like YNAB (You Need A Budget) are free for college students; others, like Goodbudget, EveryDollar, and Empower, offer a free basic plan.

3. Set a Limit on Dining Out

Eating out is the biggest monthly food expense for college students without a campus meal plan, running around $102 per week, according to the Education Data Initiative.

Even grabbing coffee on (or off) campus every morning can add up — just one Starbucks tall drip coffee ($3.76) a day costs $1,372 a year. If you brew your own regular filter coffee ($0.50 per cup; $182.50 per year), you can save $1,189.50.

That doesn’t mean you can never go out for meals and treats. You might choose to eat out with friends on Saturday nights, for example, or grab a special coffee drink on Sunday mornings.

Recommended: 10 Money Management Tips for College Students

4. Start Couponing

It may sound old school but using coupons can help you spend significantly less on groceries in college. You might start by signing up for your favorite store’s loyalty program. This will give you access to digital, store-sponsored deals. Then stack up more deals by clipping coupons from the weekly circular in the mail, and saving them for your next grocery run. Before you hit the store, go online: You can often find good coupons at sites like Coupons.com and The Krazy Koupon Lady. It’s also worth checking manufacturer’s websites for offers on items you buy regularly.

5. Buy Generic or Store Brands

Reaching for a popular brand of food generally means spending more money. To grocery shop on a budget, consider going with the item’s generic or store brand counterpart. Consider: At Target, a 20-ounce bottle of Heinz ketchup runs $4.49, while the store brand equivalent is $1.59. While shaving a few dollars off your bill may not seem like much, saving a few extra bucks on 20 items can add up.

Also keep in mind that many generic products are manufactured in the same factories as your favorite name-brand products. Some generic products are, in fact, exactly the same as name-brands but with a lower price tag.

6. Buy in Bulk

Some foods cost significantly less when purchased in larger quantities. And you can take advantage of bulk pricing even if you are shopping for one — just freeze what you don’t need. For example, if you see a two-for-one deal on bread, cheese, or meat, take advantage of the savings and freeze the extra item. You can also cash in on bulk savings for items that last longer, such as cereals, oatmeal, rice, and pasta. This tip for saving money on food can also lead to fewer trips to the store, saving transportation costs (and time).

7. Learn How to Cook Healthy, Budget-Friendly Meals

Buying a box of ramen for a couple of bucks may seem like the cheapest meal for college students, but it could end up costing you in the end. It doesn’t have much nutritional value and likely won’t fill you up, so you may end up eating more. A better strategy: Learn how to cook a few simple, healthy meals that focus on veggies and whole grains and make (costlier) lean meat the “side.”

You can also lower your grocery bill by buying in-season (or frozen) produce, and adding meatless Monday (and maybe one or two other days) to your calendar. Cheaper protein substitutes include beans, tofu, and lentils.

8. Download Apps That Offer Cash Back on Groceries

When you’re searching for ways to save money on food in college, don’t forget about all the rebate apps out there. While these apps don’t give you a discount up front (like a traditional coupon), they offer cash back for buying groceries, which can add up to a significant sum over time. You can typically register with these services for free. Depending on the app, you may need to link a loyalty card or submit receipts to receive a rebate. Some to check out:

•   Ibotta

•   Receipt Hog

•   Checkout 51

•   Fetch Rewards

•   Rakuten

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

9. Consider Buying a College Meal Plan

Generally, students will save money by declining the meal plan and making most of their meals at home. However, that’s not the case for everyone. Off-campus dining can add up quickly. So if you tend to eat out a lot and don’t enjoy cooking, a campus meal plan could potentially be a better deal. You might opt for the lowest plan (such as seven meals per week) and then use your swipe for the most expensive meal of the day.

Another dining hall hack that can help you save on food: Bring a plastic container with you and pack up your leftovers and unused napkins that you already took (you paid for it and it will only end up in the garage.)


💡 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.

10. Find Free Food

While it’s not something you can rely on every day, you’d be surprised at how much free food is available on campus. School groups, clubs, and organizations will often offer free food to students as a way to draw a larger crowd to their public events. Browse community boards, event flyers, and your school’s newspaper or website to learn about special events offering free food. This is one of the easiest ways to save money on food in college.

Recommended: How to Get Involved on Campus in College

11. Maximize Your Leftovers

It’s not always easy, or cost-effective, to cook for one, so you may want to cook more than you need. This means leftovers, which can help you save money on meals later in the week. While it may sound boring, you can get creative with leftovers. Making chicken one night? Shred the leftovers, add some salsa and toss it on a tortilla for lunch the next day. Or mix it up with a little mayo for chicken salad. Leftover veggies, rice, quinoa, beans, meat, and/or seeds can all come together for a tasty Buddha bowl.

Just keep in mind that leftovers can typically be kept for three to four days in the refrigerator, according to the Mayo Clinic. After that, the risk of food poisoning goes up. If you don’t think you’ll finish leftovers within four days, freeze them right away.

The Takeaway

Food is expensive but that doesn’t mean you can’t eat well on a student budget. The key is to plan ahead; get comfortable with a few low-cost, healthy (and easy) recipes; maximize leftovers; and minimize eating out.

Also keep in mind that student loans, both federal or private, can be used to cover not just the cost of tuition and fees but also living expenses, and that includes groceries and food. If an expense is essential to your educational success — meaning it supports your basic daily needs or attendance at school — it’s likely a permissible use of student loan funds.

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

Is it cheaper to buy your own food in college?

It’s generally cheaper to buy groceries and cook at home than to sign up for the college meal plan. However, that’s not necessarily true for every student. Off-campus dining can add up quickly. So if you tend to eat out a lot and don’t like to cook, a campus meal plan could potentially cost less than buying your own food.

How much should a college student spend on groceries a month?

It depends on your budget and the cost of food in your area. On average, college students spend $673 on food per month. That includes eating off-campus ($410) and meals cooked at home ($263).

What percent of college students eat out?

Studies suggest that 42% of college students eat out multiple times a week. College students spend, on average, $102 a week eating off-campus, according to the Education Data Initiative.

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-Q425-018

You don’t necessarily need a four-year degree to have a rewarding career that pays well. In fact, there are plenty of jobs out there that don’t require a bachelor’s degree and meet a wide variety of talents and interests, from nursing to mechanical technicians.

Here’s an explainer of what exactly is a “trade job,” plus a list of 25 of the highest-paying trade jobs as of 2024, which is the latest data available from the Bureau of Labor Statistics.

What Is a Trade Job?

A trade job is a career that requires advanced training and skill that can be acquired outside a four-year bachelor’s degree. Instead, experience can be acquired through on-the-job instruction, apprenticeship, or vocational schooling.

Highest-Paying Trade Jobs

If you’re interested in a job that doesn’t require a college degree, or you love working with your hands, consider this list of some of the highest-paying trade jobs in the U.S. The compilation shows average annual salary and was compiled from the Bureau of Labor Statistics.

Regardless of how much you earn, it’s a good idea to track your spending. Doing so can give you an accurate picture of where your money is going and help you identify spending habits.

1. Power Plant Operator, Distributor, and Dispatcher – $102,100

Requirements: High school diploma or equivalent, long-term on-the-job training

Duties: Control power plants and the flow of electricity from plants to substations, which then deliver power to homes and businesses.

Recommended: Should I Sell My House Now or Wait?

2. Real Estate Broker – $75,240

Requirements: High school diploma or equivalent. Must complete some real estate courses to be eligible for licensure.

Duties: Help people buy and sell properties.

Recommended: Should I Sell My House Now or Wait?

3. Registered Nurse – $98,430

Requirements: Bachelor’s degree in Nursing, Associate degree in Nursing, or a diploma from an approved nursing program. Registered nurses must be licensed.

Duties: Help provide and coordinate patient care.

4. Dental Hygienist – $93,890

Requirements: Associate degree

Duties: Provide preventive dental care and examine patients for signs of oral diseases.

5. Water Transportation Worker – $80,150

Requirements: Will vary by job. For example, there are no requirements for entry-level sailors, while other workers might need to complete Coast Guard–approved training.

Duties: Operate and maintain vessels that carry cargo and people on the water.

6. Diagnostic Medical Sonographer – $92,550

Requirements: Associate degree

Duties: Operate special imaging equipment to create images of patients’ internal organs or to conduct tests.

7. Farmer, Rancher, or Other Agricultural Manager – $87,980

Requirements: High school diploma or equivalent

Duties: Run farms and other establishments that produce livestock, dairy products, or crops.

8. Gas Plant Operator – $85,470

Requirements: High school diploma

Duties: Help distribute or process gas for utility companies by controlling the compressors on main gas pipelines.

9. Pile Driver Operator – $79,000

Requirements: High school diploma and vocational training can be helpful.

Duties: Operate machines that drive pilings for retaining walls, bulkheads, and foundations of buildings, bridges, and piers.

10. First-Line Supervisor of Construction Trades and Extraction Workers – $84,500

Requirements: High school diploma and five years or more work experience

Duties: Directly supervise and coordinate the activities of construction or extraction workers, such as miners or those drilling for minerals.

11. First-Line Supervisor of Mechanics, Installers, and Repairers – $82,930

Requirements: High school diploma, some work experience

Duties: Directly supervise and coordinate mechanics, installers, and repairers. They may also advise customers seeking recommendations for services.

12. Legal Support Worker – $67,810

Requirements: Associate degree

Duties: Perform a variety of tasks to support attorneys such as interviewing clients, legal research, and case summaries.

13. Locomotive Engineer – $79,600

Requirements: High school diploma

Duties: Operate passenger and freight trains safely. May also coordinate train activities or control rail yard signals and switches.

14. Subway and Streetcar Operator – $75,620

Requirements: High school diploma or equivalent

Duties: Operate subways or elevated suburban trains that don’t have a separate locomotive, or may operate an electric-powered streetcar. May handle fares.

15. Line Installer and Repairer – $82,280

Requirements: High school diploma or equivalent

Duties: Install and repair lines for electrical power systems, telecommunications, and fiber optics.

16. Computer Network Support Specialist – $79,610

Requirements: Entry-level requirements may vary, but network support specialists usually need to have an associate degree. Applicants to these jobs may qualify with high school diploma and information technology certifications.

Duties: Provide technical support to computer users while also maintaining computer networks.

17. Claims Adjuster, Examiner, and Investigator – $78,720

Requirements: High school diploma or equivalent

Duties: Evaluate insurance claims and act as an intermediary between claimants and the insurance company.

18. Electrical and Electronics Installer and Repairer for Transportation Equipment – $80,980

Requirements: Specialized training at a technical college

Duties: Install and maintain mobile electronics communication equipment on trains, watercraft, or other mobile equipment.

Recommended: The Highest Paying Jobs in Every State

19. Avionics Technician – $82,350

Requirements: Some may obtain a degree or certificate from a Federal Aviation Administration–approved aviation maintenance technician school, while other candidates may be trained on the job or in the military.

Duties: Repair and perform scheduled maintenance on aircraft.

20. Fire Inspector and Investigator – $87,440

Requirements: High school diploma, on-the-job training, and typically some experience as a firefighter

Duties: Fire inspectors help ensure buildings meet federal, state, and local fire codes and inspect buildings for potential fire hazards.

21. Transit and Railroad Police – $91,820

Requirements: Typically you must have a high school diploma or equivalent, complete a transit and railroad police training program, and receive a passing grade on a law enforcement exam from your state.

Duties: Help protect employees, passengers, and railroad and transit property.

22. Insurance Sales Agent – $81,510

Requirements: High school diploma or equivalent

Duties: Work with clients and customers to explain and sell various types of insurance.

23. Media and Communication Equipment Worker – $83,030

Requirements: High school diploma or equivalent

Duties: Install, repair, and maintain audio and visual systems across various industries, such as corporate offices and the film industry.

24. Boilermaker – $76,900

Requirements: High school diploma or equivalent

Duties: Install, maintain, and repair boilers.

25. Construction and Building Inspector – $76,430

Requirements: High school diploma or equivalent

Duties: Inspects buildings to ensure they are structurally sound and in compliance with specifications, building codes, and other regulations. May focus on a specific area such as plumbing or electrical systems.

The Takeaway

On the high end, trade workers can make $100,000 or more at a career that doesn’t require a college education. That’s well above the $62,712 that represents the annual median income of U.S. full-time workers. And with a diverse range of career options to choose from, individuals who choose a trade job have a good chance at finding a fulfilling career that matches their interests and personality.

As your career takes off and you start earning a salary, you’ll likely want to begin budget planning and setting financial goals like paying down debt and saving for your future.

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.

Photo credit: iStock/kali9

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.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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

SORL-Q425-021

When you have a new baby on the way, you may be eager to create a nursery that’s comfortable, functional, and stylish. You can drop big bucks to turn a spare room into a dream nursery. But if you’re willing to put in some elbow grease and think outside the box, you could get the job done for much less.

Here are some creative DIY nursery ideas that won’t break the bank.

Use Paint to Make a Big Impact

If home improvement shows have taught us anything, it’s that paint can be a powerful — and cheap — way to change things up. In fact, for the cost of a few gallons of nontoxic paint, a roll of painter’s tape, and drop coverings, you can completely transform any room.

The options are limited only by your imagination. Paint all four walls the same shade to create a cohesive look, or focus the color on one wall to make a real statement. Use painter’s tape to create shapes or patterns, like stripes or chevrons, that pack the same punch as wallpaper but without the mess. If you’re artistic, paint a mural with animals or popular cartoon characters. Or considering all the time your baby will spend in their crib, you may decide to spiff up the ceiling with a pop of color.

Price tag: $75 to $200


💡 Quick Tip: Need help covering the cost of a wedding, honeymoon, or new baby? A SoFi personal loan can help you fund major life events — without the high interest rates of credit cards.

Get a Soft Rug

If you have hardwood floors, a soft rug won’t just help your feet stay warm when you come in for late-night feedings. You’ll also want a cozy surface for your baby to play, and later, learn to crawl.

You can get an area rug at a local hardware or furniture store that can bring out some of the colors in your decor and provide a soft buffer between your baby and the floor.

Price tag: $50 to $500

Make Your Own Art

Blank walls are boring, but art can be expensive to buy. So why not make your own creations?

One idea: Get jumbo letters from the local craft store that spell out your baby’s name and hang them on the wall.

Or figure out the theme of the room to help you come up with other ideas. For example, you can go to the zoo with a camera and then print out pictures of animals for an animal-themed room. Or become inspired by the night sky and put up sparkly stars and a moon on the walls. You can also find cool fabric and tack it onto a canvas for a fabric panel.

Price tag: From $25

Help Baby Sleep

Having a newborn goes hand in hand with frequent wake-up calls. But there are ways you can help baby settle down after a 3 a.m. feeding or stay asleep during a mid-afternoon nap.

Blackout curtains are a great way to prevent sunlight from seeping through window coverings — and interrupting a good nap. Making a set is doable with the help of a sewing machine and a trip to the local fabric store.

Hanging a mobile above the crib can also keep your little one entranced until their eyes start to close. You can make your own with everyday household and craft supplies, like pom poms, fabric, or paper. Simply attach the items to a string or embroidery floss, attach to a lightweight frame or embroidery hoop, and hang.

Price: From $10

Get Creative With Storage

Even if you’re a minimalist, chances are your baby will require a lot of stuff: clothes, toys, diapers, pacifiers, books…you get the idea. As you’re putting together your nursery, be sure you have ample places to store all those things. Bins, boxes, shelves, and drawers can make clean-up a breeze.

Storage systems don’t have to be expensive. You can get budget-friendly ones at local discount furniture stores. Or check online or garage sales for a used piece of furniture that you can refinish or repaint.

Just remember to fasten all the furniture to the wall so that when your baby starts pulling themselves up and walking, nothing topples over on them.

Price: From $100

Recommended: 25 Tips for Buying Furniture on a Budget

How Do You Pay for a Nursery Room Renovation

DIY-ing a nursery may save you money, but you’ll still need to make room in the budget. This can be a challenge if you’re also trying to balance the cost of hospital bills, doctor’s visits, and pricey essentials like a stroller, car seat, or crib. Here are some options you may want to consider.

Personal Savings

Tapping into your savings allows you to access the cash you need right away. However, if you’re planning to take unpaid maternity leave or are budgeting for medical expenses, you may decide it makes more sense to leave your emergency fund untouched.

Credit Card

Like personal savings, a credit card lets you pay for DIY nursery supplies now. However, at the end of the month, you’ll be billed for whatever you’ve spent. It’s important to make at least a minimum payment by the due date to avoid a late fee. But to avoid paying interest entirely, you’ll need to pay off the balance in full each month.

Recommended: Tips for Using a Credit Card Responsibly

Personal Loan

Generally speaking, a personal loan can be used for virtually anything, including decorating a nursery. Interest rates are relatively low, which means that you can likely get a loan at a low rate compared to a credit card. For that reason, it might be a much better idea than putting the expenses on a credit card, which typically have higher interest rates.

A typical term length for a personal loan (or a home improvement loan) is anywhere from one to 10 years. Extending your repayment over multiple years could reduce your monthly payments. But keep in mind, the longer the term length, the more you’ll pay in interest over the life of your loan.

When looking for a loan, you may want to look into securing a fixed interest rate so that you can lock in your low rate over the life of your loan.

Recommended: How to Apply for a Personal Loan

The Takeaway

When you’re expecting a new baby, you naturally want to give them the world. This may include a room they’ll be happy to call their own. Fortunately, you can get the nursery of your dreams without having to spend a lot of money. There are creative, affordable ways to create a statement, like painting the walls or ceiling a fun shade or designing an adorable mural. Not as crafty? Explore simple, inexpensive projects, like making a mobile to hang over the crib. For bigger expenses, consider using savings or a personal loan.

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

Where can I get ideas for decorating a nursery?

There are many good places to find inspiration for a baby’s nursery. You could see what friends have done, look on Pinterest, go to furniture/decor stores, or be inspired by a favorite children’s book.

How to pay for a nursery room?

To pay for a nursery’s set-up and decor, you can use savings, a personal loan, or a credit card (though they may charge high interest rates). You can save on costs by DIY-ing some projects and seeing if friends and family with older children have any hand-me-down items, like a rocking chair.

How can I make a small nursery work?

To make a small nursery work, look for multifunction furniture, like a dresser with a changing pad on top to save space. Some cribs are available with storage underneath or you can stow toys in baskets below it. Also consider removing closet doors that hinder circulation and hang fabric instead.

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-Q425-009

Credit card churning describes when you open and then close a credit card account to snag sign-up rewards. Given how much competition there is for your business as a card holder, there are many enticing offers out there of cash, points, miles, and more. Some people may be tempted to try to grab those freebies and bonuses, but this practice comes with pros and cons.

Read on to learn about credit card churning and whether it’s something you should ever try.

What Is Credit Card Churning?

Credit card churning occurs when you open and close credit card accounts for the sole purpose of earning a sign-up bonus. The trick is to do it over and over again, with several credit cards. The end goal is to earn as many rewards as you can. In other words, you are maximizing your eligibility for points and prizes.

Types of Sign-up Bonuses

Of course, there is no such thing as a free lunch or a free reward. Being rewarded usually costs you. In order to earn the credit card rewards, you are typically required to spend a certain amount of money on that credit card, and it has to be done within the first few months (in most cases, three months).

The way you’re lured into a sign-up bonus is by earning a large amount of rewards by spending only a small amount. This usually happens only with a new credit card as a “welcome” offer. If you are careful about what and where you spend, you may be able to save money and get rewarded in the meantime. However, as you’ll learn below, this practice can also have its downsides.

Can You Win at Credit Card Churning?

If you want to try to get rewarded via credit card churning, there are some important best practices to be aware of.

Pay Off Your Balance in Full Each Billing Period

This is a good tip even if you’re not gunning for reward points. If you don’t pay off your balance at the end of the month, the rewards you earn will wind up being a net loss as credit card interest rates take their toll. There is no bigger credit card churning buzzkill than taking months or even years to pay off the debt you accumulate racking up charges to earn a sign-up bonus.

While on this subject, remember that paying off your credit card balance in full every month will keep away the interest charges that accrue when you don’t make a full monthly payoff.

Look at it this way: When it comes to credit card churning, it’s you against the credit card companies. You want to reap their rewards but not open yourself up to suffocating debt and high-interest charges.

Credit card churning can work if the consumer hits the rewards thresholds, but practice responsible spending. If you’re someone who doesn’t manage credit card debt well or tends to overspend just to cash in on the rewards, it might be better to steer clear of credit card churning.

Make Your Credit Card Payment on Time

Don’t be even a day late. Late fees can be a budget buster, and they can damage the credit rating you’ve worked so hard to keep strong. If other credit providers see a pattern of late payments, they may not be so fast to offer you their credit card, which means no rewards, or give you their best rates.

An excellent way to avoid late payments is to schedule automatic payments through your debit card, or checking or savings accounts. This way, you just set it and forget it!

Have a Plan for Your Rewards

Enjoying the rewards you earn may mean so much more to you when you have a short-term goal for how to use them. Perhaps the points are for airline miles or a vacation destination. Maybe you can use them toward a new wardrobe or the latest electronics. Keeping your eyes on the prize will prevent you from squandering your reward points on something forgettable or regrettable. Stay strong.

Don’t Bite Off More Than You Can Chew

Fight the temptation to get greedy. New credit cards with amazing reward offers are a dime a dozen. They’re like buses: Another one will come along soon.

Think about where you may be in a few short months if you take on too many credit cards and too much debt. That won’t be worth any amount of reward points. Only use the number of cards that you can comfortably manage.

Focus on Credit Card Fees

Credit card companies tend to be selective about what they promote to you. The reward offer may come with annual fees, transfer fees, and other charges. If your card requires an annual fee, ask yourself if acquiring it and paying fees is worth the reward points.

Shop Around

Be extremely selective in choosing your rewards-based credit cards. The competition among credit card companies for your business is intensely competitive. Take your time, and wait for the best offer.

Be Wary of No-Interest Credit Cards

It certainly sounds tempting to get a credit card that charges zero interest, and as long as you plan to pay off your balance in full every month, you’re already ahead.

However, this type of offer for a balance transfer credit card can bite you in the back end with extremely high-interest rates when the period expires or a “transfer charge” when transferring your high-interest credit cards.

Charges like that could equal the same amount of money you would be paying in the interest you thought you were passing by. Be sure you’re aware of the pros and cons of no-interest cards.

Read the Fine Print

Always read the fine print. That amazing offer may have some exclusions and exceptions and other unpleasant surprises. Find out which of the reward rules are subject to change and if there are any expiration dates or winning rewards. If you are not great at reading the fine print, find somebody close to you who is, or call the credit card customer service line and get your answers.

Protect Your Credit Score

A credit score is an overview of your credit history and payback behavior. Making timely monthly payments and not defaulting on any of your credit cards or loans, and you’ll likely be on the right path. It also helps to keep your debt utilization ratio (how much your balance is versus your credit limit) low; no more than 30% at most.

Always consider your credit score before you consider credit card churning. Recognize that if you apply for new credit cards, a hard credit inquiry will be conducted. This will temporarily lower your credit score a bit.

Be Organized

When it comes to credit card churning, always stay organized and aware. Know exactly what the offer is and what you need to do to get it. Know the deadline for spending the money that will make you eligible for the rewards.

Keep up on your progress toward your rewards goal: How much more do you have to spend and how much more time do you have before the offer expires? Again, avoid the pitfall of impulse spending just to get your reward.

When to Avoid Credit Card Churning

Think of credit card churning possibly as a privilege you have to earn rather than a right that doesn’t require prior deliberation. If you fall into any of these following categories, think twice before opening another credit card.

The biggest takeaway here is if you have credit card debt, it doesn’t make sense to continue to rack up debt in the name of credit card churning. Instead, it’s best to make a plan to get out of credit card debt ASAP.

If Your Credit is Bad

Credit card rewards are meant for customers with good-to-excellent credit, not for customers with late payments or delinquent accounts. Think of this as an opportunity to build your credit score. Once you do, you may be eligible for some offers.

If You’re About to Take on More Debt

Are you about to sign a mortgage or are on the verge of a car or school loan? Applying for extra credit cards for the sake of their rewards will more than likely affect your credit score, as noted above. Each hard credit inquiry will lower your score temporarily. The constant nature of credit card churning can possibly stand in the way of your loan request or result in you being offered a higher interest rate than you would be with a higher score.

If you’re thinking about credit card churning, wait until after you secure that all-important loan or at least wait until your loan is approved, your payments are underway, and your monthly budget adjusts to the debt increases.

If You Don’t Use a Credit Card That Often

Not overusing a credit card can show good discipline. However, your lack of credit card usage may mean you’re not a good candidate to try credit card churning. In some cases, credit cards will only grant you rewards if you spend a certain amount of money, which means increasing your spending (and your debt). You might feel “obligated” to use plastic more than you would otherwise.

If You’re Already Earning Rewards on Your Credit Cards

Some credit cards offer travel points and other rewards, without you having to get into a spending contest.

If you are pretty disciplined about your monthly spending and careful about avoiding too much debt, you’ll probably already steadily earn points and rewards on the credit cards you have. Call customer service and ask what you are eligible for.

If This Is Your First Credit Card

Usually, getting your first credit card is a chance to prove that you are responsible with credit. You can use that first card to spend wisely and pay your balance in full each month. This can build your credit score and keep your finances on the straight and narrow.

If you get involved with credit card churning right off the bat, it could lead to trouble that you don’t need when you’re first establishing credit. Building a credit score once it’s damaged can take a long time and can stand in the way of the things you may want and need to buy. Wait until you’re further along in the credit game, and when you’re earning money to handle a bit more debt.

If You Tend to Overspend

Know yourself. If you’re the type who tends to overdo it when using plastic and can’t resist BOGO sales and the like, proceed with caution. Getting a large number of credit cards can leave you open to running up a tab on many of them and accruing too much debt. In other words, if you are in the habit of overspending, think twice.

Too Much Credit Card Debt?

If you have accumulated too much credit card debt, whether or not churning is a factor, there are several ways you might deal with it:

•  Investigate debt payoff techniques, such as the avalanche and snowball methods.

•  Consider a balance-transfer card to give yourself a breather from high interest rates and a chance to pay down your balance.

•  Explore a debt consolidation personal loan to simplify payments and possibly reduce the interest you pay. These personal loans can come in amounts from hundreds of dollars to $100,000.

•  Pursue debt counseling from a qualified provided; some nonprofits offer free or low-cost services.

Recommended: Debt Consolidation Calculator

The Takeaway

Credit card churning involves opening and closing credit card accounts to snag rewards. This practice can be harmful as it can lead to taking on too much debt and lowering your credit score. If you do find yourself with considerable credit card debt, you might look into a balance transfer credit card, debt counseling, or repaying the debt with a lower-interest personal loan.

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 to get free from the cycle of debt?

If you are stuck in a cycle of debt, you might try budgeting, debt consolidation loans, and using techniques like the avalanche or snowball method to pay off what you owe.

What is credit card churning?

Credit card churning is the practice of opening and then quickly closing credit card accounts to snag bonuses and rewards that the issuer offers, such as cash back, a sign-up bonus, or discounts.

What are downsides of credit card churning?

Each time you apply for a new credit card, a hard credit inquiry is likely triggered, temporarily lowering your credit score by several points. Also, credit card churning can involve fees and may encourage overspending to reach certain usage milestones.

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-Q425-026