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8 Steps to Build Credit Fast

Your credit score can affect many areas of your life.

A poor credit score can make it harder to buy a car, get a job, purchase a home, rent an apartment, have the utilities turned on, and even get a cell phone.

It can also cost you money, since credit card companies and lenders typically consider your credit score when determining your interest rate.

Fortunately, if your credit is less-than stellar–or you haven’t yet had a chance to establish much, or any, credit history–there are some simple steps you can take to build or boost your score quickly.

While you can’t typically establish exceptional credit overnight, you may be able to improve your credit score in a matter of months by putting a few good credit habits into practice, building a positive payment history, and avoiding credit-damaging mistakes.

Simple Steps to Build Your Credit Faster

Here are some strategies that can help you establish or improve your credit profile ASAP.

1. Understanding What Goes Into Your Score

One of the most commonly used credit scoring models is the FICO® Score .

FICO has five factors it considers when calculating its credit scores.

•  Payment history: 35% of this score is related to your history of payments on credit cards, student loans, mortgages, and other loans. The algorithm looks at the frequency and severity of missed and late payments.
•  Credit utilization: 30% of this score is based on how much of your available credit you are currently using.
•  Length of credit history: The amount of time you’ve had each credit account open makes up 15% of this credit score. That’s why it’s nearly impossible to have perfect credit when you’re new to credit.
•  New credit: 10% of this credit score has to do with opening new credit. (However, opening several new credit accounts at the same time isn’t typically a good way to bump up your score, because that can look like you’re in financial trouble).
•  Credit mix: The final 10% of this credit score is based on the different types of credit you have and how you’ve managed them.

2. Checking Your Credit Report and Disputing any Errors

Credit scores are calculated on the information in your credit reports.

That’s why it’s a good idea to get copies of your credit reports from the three major credit bureaus–Equifax , TransUnion and Experian –and to make sure all the information is accurate.

According to the Consumer Financial Protection Bureau (CFPB), one in five people have an error on at least one of their credit reports.

Everyone is entitled to see their credit reports for free once a year at the government-mandated AnnualCreditReport.com site.

When you get your reports, it’s a good idea to comb through them carefully and to look for any inaccuracies, such as payments marked late when you paid on time, wrong account numbers, incorrect loan balances, or accounts that aren’t yours.

If you find an error in one or all your credit reports, you can reach out to the credit bureaus directly to dispute the information.

If you see accounts in your name that you never opened, and believe you may be a victim of identity theft, you can report it to the Federal Trade Commission at IdentityTheft.gov or 877-438-4338.

A mistake on one of your credit reports could be pulling down your score. Fixing it can help you quickly repair your credit.

3. Paying Bills on Time Every Time

Payment history is the single most important factor that affects your credit scores.

Not only that, a past due payment can stay on your report for seven years.

Setting up autopay, either through each provider or company, or through your financial institution, can be a great way to ensure you never miss a bill.

If you do miss a payment by a few days, all is not necessarily lost, however.

There is generally a small window of time to make up a missed credit card payment before any damage to your credit happens.

That’s because late payments are typically not reported to credit bureaus until the payment is at least 30 days late.

The key is to get it in as soon as you can.

4. Becoming an Authorized User on a Credit Card

If you have no credit or a low credit score, you may be able to build it up by becoming an authorized user of a credit card that the cardholder uses responsibly.

An authorized user has permission to use an account, but does not have any liability for debts.

If a friend or family member adds you as an authorized user to their account, the card issuer will then typically report you as an authorized user to the credit reporting companies.

In this way, you gain a credit history from the credit usage of your friend or family member.

5. Opening a Secured Credit Card

Some credit card companies offer “secured” credit cards, which allow you to build credit history with little risk to the credit card company.

Here’s how it works: You pay a cash deposit up front that is equal to the limit of the card. For example, if you put down a $500 deposit, you would have a $500 limit on the card.

You can then use it like a regular credit card.

Using the secured card responsibly–being mindful of the amount you’ve charged in relation to the card’s limit–and paying your bills in full and on time will all be reported to the credit bureaus.

6. Using your credit card regularly

One way to build credit is to display a history of responsible borrowing.

For that reason, you may want to place monthly bills and other expenses on your credit card–being sure to pay the bill in full each month by the due date.

7. Keeping Credit Card Balances Low

This can help move the needle on credit utilization, or the amount of debt you have compared to the total amount of credit that is available to you, and is expressed as a percentage.

After payment history, this is typically the second most important factor that influences your score.

The rule of thumb is to use no more than 30% of your total credit at any time. This includes access to all credit lines, as well as the percentage on individual cards.

One way to do this is make multiple payments on your credit card throughout the month.

If you’re able to keep your utilization low, instead of letting it build toward a payment due date, it could quickly benefit your score.

8. Keeping Credit Cards Open

It might seem to make good financial sense to close credit cards you never or seldom use.

But from a credit score perspective, it may not be a wise move.

That’s because closing a credit card means you lose that card’s credit limit when your overall credit utilization is calculated, which can lower your credit score.

A better bet might be to keep the card open and to use it occasionally so the issuer won’t close it.

The Takeaway

A credit score in the good to excellent range could provide you access to the most competitive interest rates for loans and credit cards, and also make it easier to rent an apartment, get a cell phone, and land a new job.

Some ways to improve your score quickly include having active open accounts that you are consistently paying on time, keeping your loan balances low, and disputing any errors on your credit reports.

Building good credit is also a matter of establishing good financial habits, such as tracking your spending (so you don’t come up short at the end of the month), and make sure all of your bills are posted by their due dates.

One move that can help you stay on top of your finances is signing up for SoFi Checking and Savings®.

SoFi Checking and Savings is a checking and savings account that allows you to earn competitive interest, spend, and save–all in one account. And you’ll pay zero account fees to do it.

SoFi Checking and Savings also allows you to track your weekly spending right from the dashboard in the SoFi Checking and Savings app.

You can also use the app to set up all of your bill payments to help ensure that payments are never missed or late.

Check out everything a SoFi Checking and Savings checking and savings account has to offer today!



SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2022 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
SoFi Money® is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member
FINRA / SIPC .
SoFi Securities LLC is an affiliate of SoFi Bank, N.A. SoFi Money Debit Card issued by The Bancorp Bank.
SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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

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.

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A Beginner’s Guide to DeFi

The future is here, and while the flying cars that were promised haven’t arrived yet, the finance world is speeding full-force into the future with everything from wireless payment apps on our phones to entirely decentralized finance systems.

Decentralized finance, known as DeFi for short, is a fundamentally new financial system that moves monetary control away from centralized banks and towards public blockchains.

Put more simply, DeFi has the potential to change the underlying mechanics of financing and banking, as well as how people access financial services, by using the internet and smart devices instead of going through a centralized bank.

What Is Centralized Finance?

In order to understand DeFi, it is helpful to understand how the traditional financial system works. In general, the current US financial system is largely controlled by central authorities.

For example, some aspects of the financial system are controlled by the Federal Reserve (sometimes referred to as “The Fed”). The Federal Reserve, which serves as the nation’s central bank, was created in 1913 after several financial panics caused people to withdraw their money from decentralized banks. Mass withdrawals of money caused banks to fail and incited more financial crises.

In response to these crises, the US government created the Federal Reserve, which acts as a centralized banking system and attempts to stabilize the economy through means such as managing national monetary policy and regulating banks. Banks, which are regulated by the Fed, also have their own controls and regulations on how finances are conducted.

For example, a bank might require a driver’s license to open a checking account or a certain credit score to take out a loan.

Simply stated, whether buying groceries with a debit card or saving for retirement, most of our financial transactions go through a bank, lender, investment company, or financial institution that is highly regulated.

Why DeFi?

While centralized banking was created in order to foster economic stability, it has come with restrictions on how people can access financial options, and with criticisms that putting financial control in the hands of a central body can create more risk if that central body gets it wrong. For example, what if the Fed decides to print too much money and inflation explodes or interest rates shut out people from accessing credit lines?

Or what about credit rates in general—if people take financing out of regulated contexts, could consumers see higher interest rates on their investments?

For example, as discussed above, most financial transactions take place through intermediaries: A bank account is required in order to use a debit card. An account at a financial institution is required in order to earn interest on money.

A broker is required in order to invest in the stock market. Each of these intermediaries is a product of the centralization of the nation’s financial system—and each intermediary potentially minimizes consumers’ financial earnings.

In the most elemental way, when money is deposited in a savings account, it earns interest. The interest that money earns is funded by the financial institution where the account is located. That financial institution earns money by lending depositors’ money to borrowers, who pay interest to the financial institution.

But the interest rate earned on a savings account is not the same as the interest rate the financial institution charges the borrower. Because it is acting as an intermediary between saver and borrower, the financial institution controls both interest rates.

But would both savers and borrowers get a better deal if it was possible to make secure financial transactions without an intermediary like a bank or other financial institution?

These are some of the questions about centralized finance that supporters of decentralized finance think that DeFi can answer without necessarily losing the stability created by a centralized bank.

What Is Decentralized Finance?

At its most basic, the idea behind decentralized finance is that it would truly put money in an individual’s control. While it might seem like there is individual control over money though robust banking options, checking and savings accounts, financial management apps, and ATM access, each of those things actually requires turning over that money to an institution and trusting that intermediary to manage it. The underlying goal of DeFi is to give actual control by using blockchain technology and open source coding to do the same types of transactions that currently take place largely through financial institutions.

Blockchain technology is a term commonly used in relation to cryptocurrency. At its most basic, blockchain can be thought of as a secure logbook that records transactions but is not controlled by a centralized institution. Rather, accountability in the blockchain is ensured because the “chain” is not editable and is stored in many places instead of in one centralized institution.

If this sounds familiar, it may be because blockchain serves as the “building blocks” of cryptocurrency like bitcoin. To understand DeFi, however, it is only important to understand that blockchain is secure, automatically generated, and able to be examined and tracked, just like a physical ledger. And unlike banks, blockchain is stored on users’ computers, which means that it’s not controlled by a central authority like the Fed.

In order for cryptocurrency like bitcoin to exist, it needs a secure ledger to track it—that’s blockchain. So is DeFi just a synonym for bitcoin and other cryptocurrencies? Not exactly. While cryptocurrencies are decentralized when it comes to issuance, transfer, and storage, they are still centralized when it comes to access and management.

Specifically, you still need to access cryptocurrencies through centralized exchanges, and many cryptocurrency projects are managed through companies which functionally act as that intermediary that DeFi seeks to eliminate. Some cryptocurrencies even tie their worth to physical currencies like the US dollar to attempt to provide stability.

DeFi takes crypto to the next level by attempting to give the benefits of cryptocurrency without the need to tie access and management through centralized access points or companies, which can obscure the open nature of these transfers and potentially lead to abuse of the system.

DeFi is a network of open-source apps based on blockchain that allow users to engage in financial acts in an entirely peer-created, peer-reviewed, open-source world, which is all based on the security of blockchain.

Because everything within the DeFi crypto universe is open source, users theoretically have the control to engage in a wide variety of financial transactions with the assurance provided by the underlying blockchain technology.

How Can Decentralized Finance Be Used?

There are many ways that DeFi crypto is and could be used. One popular way that it is being used currently is with open lending protocols. While the name sounds complicated, open lending protocols essentially seek to eliminate the centralized middleman between lenders and borrowers.

For example, instead of one person putting their savings in a bank and another person applying for a loan from that bank, two people could use a DeFi open lending protocol to lend and borrow money with open-sourced, agreed-upon contracts created by the DeFi system and stored in unalterable public blockchains.

DeFi can also be used for things like international and peer-to-peer payments. Currently, if one person wants to send money to another person, options may be limited to a third-party service or a bank in order to transfer the funds. Currently, these services take time—it may be hours or even days between when a sender transfers money and when someone else receives it.

Additionally, these services can be expensive. Whether paying a fee to a bank for a money transfer or paying to use wire services, sending money from place to place can add up.

DeFi is one possible answer to routing money from person to person because it allows individual people to transfer money to each other securely and instantly without relying on centralized third-party providers.

Getting Started With DeFi and Cryptocurrencies

DeFi is starting to take off, but it remains to be seen whether it will truly become an alternative to traditional banking. One sure thing, however, is that cryptocurrencies are becoming cemented in the financial system. An easy way to buy cryptocurrencies without needing to be a financial expert is with SoFi Invest®.

SoFi Invest® empowers members to trade stocks, ETFs, and even cryptocurrency. SoFi’s crypto offerings currently include Bitcoin, Etherium, and Litecoin, and can be accessed directly in the SoFi app.

Easily add cryptocurrencies to your savings plan with SoFi Invest® along with traditional investments like stocks and ETFs. A separate cryptocurrency wallet, or even cryptocurrency experience, is not necessary before getting started.

Learn more about getting started with crypto using SoFi Invest®.


SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments. Limitations apply to trading certain crypto assets and may not be available to residents of all states.

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

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Pros and Cons of Homeschooling

Homeschooling has long been an option for parents looking to educate their children outside the traditional bounds of public and private schools. The movement gained momentum in the 1970s, when educational theorist John Holt argued that formal schools placed too much emphasis on rote learning.

Since then the number of homeschooled children has grown to 2.5 million, about 3% to 4% of the population of school-aged children. And it looks as if those numbers will continue to grow by an estimated 2% to 8% each year.

COVID-19 has turned traditional schooling on its head and increased interest in homeschooling. Many formal institutions have decided to switch to online learning to avoid the risk of spreading the virus through in-person instruction. As a result, more parents are wondering whether homeschooling is a good option for them.

While homeschooling methods can offer benefits, there are some downsides to consider as well. Here’s a look at the pros and cons of homeschooling that might help parents decide whether it’s the right path for them.

The Pros of Homeschooling

Creating a Unique Curriculum

Parents who wish to homeschool their kids have a lot of flexibility when it comes to the direction of their child’s learning. Depending on their child’s needs and interests, parents might choose to spend more time teaching their kids musical instruments, developing foreign language skills, or going on educational field trips.

Homeschooling can be a personalized curriculum that works best for a particular child, rather than trying to make that child fit into the confines of a pre-existing curriculum.

That said, rules for what a homeschool curriculum must cover vary by state, and states may require annual assessments to make sure children are on track.

Tailoring the Child’s Education to Their Needs

The traditional school day and curriculum functions on a relatively strict schedule. Each subject tends to be given the same amount of time. And teachers must move at a certain pace in order to make sure they cover everything the curriculum requires.

This one-size-fits-all approach doesn’t necessarily work for all learners. For example, while a child may be a whiz at math, they may need extra time learning to read.

Parents of homeschoolers can adjust schedules to make sure that kids are spending enough time on the subjects in which they need the most help, while avoiding lingering too long on subjects that come easily.

Some kids may have challenges learning in a traditional classroom setting with 20 other kids and multiple distractions. Maybe a child works best with long blocks of uninterrupted study, or maybe they work best in shorter blocks of time with short bursts of physical activity outside in between tasks.

Parents may learn that some subjects are best taught at certain times of day. For instance, maybe a child is most focused in the morning, making it a good time to cover more challenging subjects, saving easier tasks for the afternoon.

Cost Saving

Homeschooling may be a good option for parents who are dissatisfied with their local public schools but don’t want to pay for private school. On a moderate budget, homeschooling could cost $300 to $500 per child each year. That figure assumes that parents are taking some money saving measures, such as saving money on school supplies, buying used textbooks, renting or borrowing curricula, and leaning on the public library as a resource. But it also assumes they’ll be spending on a few extras like tutors as needed and extracurriculars like art classes.

On the other hand, the average private school tuition is more than $11,000 per year. Parents who can devote their time to teaching their kids at home have the opportunity to save a lot of money, especially if they are teaching multiple children at the same time.

The Cons of Homeschooling

Increased Workload

While there are plenty of benefits, it’s also important to weigh some factors that could be considered disadvantages of homeschooling. Chief among these is the sheer amount of time and effort it takes to homeschool a child.

In many ways, homeschooling is a full-time job, requiring careful planning each day to make sure kids are covering the necessary ground.

Depending on where parents live, adding the extracurriculars that can make sure a child has a well-rounded education can be difficult. Living in a rural area may make it difficult to find extracurricular classes outside the home or make frequent visits to a museum or experience other cultural activities in person.

Social Constraints

Traditional schools have a built-in social structure. Kids are gathered into one class and learn to interact with each other and work together. Some parents may fear their children won’t learn proper socialization if they are homeschooled.

While homeschoolers don’t necessarily have the same opportunities to socialize, there are still plenty of ways for parents to make sure their children are making friends and interacting with peers.

For example, parents may consider homeschooling co-ops, groups of families of homeschoolers that come together to go on field trips, work on life skills or do extracurriculars that traditional schools might offer, and homeschoolers might otherwise miss.

Opportunity Costs

Not only will parents be paying out-of-pocket for costs associated with homeschooling, there are also opportunity costs—the loss of a potential gain when choosing one alternative over another—to consider.

A parent who stays home to teach a child is usually not spending that time at work earning a salary. For many parents, this is a worthy sacrifice to ensure their child gets the education they need. But parents should consider opportunity cost when deciding whether homeschooling is an affordable option.

Researching Homeschooling Options

There are a wide variety of homeschooling options and resources available to parents, from fully developed private, online homeschool curricula to web-based public schools that allow students to follow a public school curriculum at home.

Some school districts may even allow kids to go to school part-time while completing some of their schoolwork at home, a compromise that some parents might feel is the best of both worlds.

When selecting a curriculum, look for the best options that meet you and your children’s needs, making sure that it aligns with the legal guidelines for your state and will meet your state’s evaluation standards.

Preparing for the School Year

Whether you choose to homeschool or stick with a traditional school setting, students will still need school supplies. Homeschoolers’ lists may look different than those from your neighborhood school, but looking for back-to-school sales will typically save parents money on these supplies.

Using a bank account like SoFi Checking and Savings® can be a great way to spend on back-to-school supplies—while saving and earning.

For parents who want to save ahead of time for school supplies, setting up a checking and savings account can be a good way to make sure the funds are there when they’re needed.

Ready to stock up on school supplies? Explore the benefits of SoFi Checking and Savings®.



SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2022 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
SoFi Money® is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member
FINRA / SIPC .
SoFi Securities LLC is an affiliate of SoFi Bank, N.A. SoFi Money Debit Card issued by The Bancorp Bank.
SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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A Guide to Law School Scholarships

So, you’ve been accepted to law school—congrats! You’re well on your way to embarking on a career that could help you fight for others’ rights and further the public good.

These are all laudable motivations, but chances are there’s something stronger weighing on you: How to pay for law school? It’s not necessarily clear how to find (or negotiate) scholarships for law school.

According to The Association of American Law Schools, on average, law school students paid $49,567 in tuition and fees for the 2019-2020 academic year to attend a private, out-of-state school—and, that amount doesn’t even include living expenses and other non-school costs that could pop up during graduate school.

U.S. News & World Report notes that the average annual cost of a public, out-of-state law school is $41,726, or $28,264 for in-state . (Even the lower cost option here comes to $84,792 for a three-year law program.)

Because students aren’t yet racking up those billable attorney hours, it can be helpful to research law school scholarship opportunities before applying. Here’s a broad overview of potential law school scholarships—plus some links to resources for students thinking about going to law school.

Crunching (and Swallowing) the Numbers

On the whole, according to non-profit organization Law School Transparency, law school tuition has been steadily rising over the last 35 years for all American Bar Association-approved law schools.

Per the numbers mentioned above, there might be a fair amount of sticker shock for those who haven’t yet applied for graduate school and are only thinking of someday going the lawyer route. (Here’s SoFi’s guide on how to apply to law school.) Fortunately, there are a range of options for aspiring attorneys seeking to fund law school.

In some cases, there are full-ride tuition scholarships and need-based grants out there. Full-rides of course, are not available at all law schools. If a law school doesn’t explicitly advertise or highlight information regarding full-ride opportunities, interested students can contact the school to ask. To offset the cost of attending law school, some school applicants may opt to apply only to programs that offer full- or partial- rides. One simple way to figure this out is old-fashioned Googling.

Students deciding whether to apply to law school may want to familiarize themselves with the language universities adopt to explain these scholarships. In some cases, specific scholarships are designated for particular students. Here are a few examples of how law schools describe their full-ride law school scholarship offerings— including, the University of Chicago Law School (which has several such opportunities), NYU’s Latinx Rights Scholarship, and Duke Law’s Mordecai Scholars. Magoosh, the higher education test-prep and study counseling company with the silly-sounding name, has published a 2018 list of a handful of others (along with suggestions on how to strengthen one’s resume when applying for such scholarships).

Full-ride law school scholarships can be highly competitive—with some schools offering as few as two to four per enrollment year. One potential tip for the search for scholarships is to target law schools with more tuition help.

U.S. News & World Report has organized and tabulated a list of 10 law schools that offer the most tuition assistance—reporting that “at least 77.8% of students who received grants at these schools got enough to cover more than half of tuition.” Some of the schools listed in U.S. News & World Report , like Pennsylvania State University-Carlisle, go as high as 93.2% of full-time students receiving aid in that amount.

If all of this is starting to sound like alphabet (and number) soup, there are dedicated resources like Fastweb to help prospective students find scholarships for which they may qualify. Fastweb is an online resource to help students find scholarships, financial aid, and even part-time jobs in support of college degrees.

The American Bar Association’s law-student division also has a running list (along with deadlines) of law student awards and scholarships. Additionally, the Law School Admission Council offers a list of diversity scholarships available to students from diverse racial and ethnic backgrounds. Here’s another guide on finding and applying for scholarships and one on unclaimed scholarship money.

Another resource that could be useful in factoring living expenses is this student loan calculator for aspiring law school students. Tools like this can, usually, auto-load the tuition and cost-of-living breakdowns for specific law schools. From here, it’s possible then to compare how much degrees from particular schools may end up costing.

Negotiating Wiggle Room

Doing all this research and the math around law school scholarships could put applicants in a more informed position when evaluating which program to attend—and, potentially, help them to identify schools more likely to be interested in their application.

A reality of today’s admissions process for law school is negotiating scholarships. Some schools have a strict policy against negotiating, but others fully expect their initial offer to be countered. That’s why it can help to save acceptance letters and anything in writing from schools that offer admission.

Offer letters could then be shared with competing schools, asking if they’re able to match another university’s aid. It might be uncomfortable asking for more tuition assistance upfront, but a little discomfort now could help applicants shoulder less law school debt later on. If arguing a position makes an applicant uncomfortable, it might be worth pondering whether to become a lawyer.

Doing research on law schools (and figuring out the likely cost-of-living expenses at each institution) could help applicants to determine which scores or grades to aim for in an effort to make law school more affordable for them. Tabulating expenses (and having them on hand) may also demonstrate to universities that the amounts being negotiated are based in well-documented expenses.

Law School Scholarships

There are lots of options for law-school hopefuls to find potential scholarships. The nonprofit organization Law School Admission Council (LSAC) has compiled a list of the many law school scholarships available to applicants .

From the LSAC’s list, the Attorney Ken Nugent Legal Scholarship ($5,000) and the BARBRI Law Preview’s “One Lawyer Can Change the World” Scholarship ($10,000) are worth pinning, due to the sizable chunk of change they offer.

Many law schools themselves offer competitive scholarships to attract stronger candidates. It might be helpful to check if a school also offers in-state residents specific tuition reductions or grants—especially true, if the applicant is considering a public school in their home state.

Similarly, some law firms offer scholarships. Usually applying is a straightforward process: Many, like the Rise To Shine Scholarship , only require a short essay to be considered. On top of this, there’s the rising trend of law firms helping new hires to repay a portion of their student debt once onboarded.

Federal vs. Private Loans for Law School

Students wanting to apply to law school could consider the differences between federal and private student loans. Federal loans come with certain benefits not guaranteed by private ones (such as, forbearance or income-driven repayment).

Private loans—like SoFi’s—can also help applicants to cover the expense of graduate school. So, it might be a good idea to weigh the pros and cons of both federal and private student loan options for law school.

For example, Direct PLUS loans for grads charge 7.08% in disbursement fees for the 2019-2020 academic year. (2020 numbers aren’t out yet.) SoFi Graduate Student Loans, by comparison, have no fees whatsoever—not even late or overdraft fees. Another great resource in understanding federal loans can be found over at studentaid.gov .

It’s important to note that private student loans don’t offer the same benefits and protections afforded to federal student loan borrowers, like Public Service Loan Forgiveness (PSLF). If a law school applicant is interested eventually in becoming a public defender or pursuing non-profit legal work, forgiveness and forbearance perks may play a role in their decision.

In addition to the financial aid resources mentioned above, more information can be found in SoFi’s overview of private student loans for graduate school. Those interested in figuring out how to pay for law school may want to check out SoFi’s competitive-rate private law school and MBA loans.

Law School Loans from SoFi

Going to law school is a big life decision. And, law school’s attendant costs add even more weight to this choice. If students interested in law school find themselves coming up short on funds for the JD after scholarships or federal aid, additional options may be available.

Some might seek out a student loan from a private lender, to name one possibility. SoFi’s private loans for law school offer competitive rates, flexible repayment options, and access to member benefits.

You can check your rates in just three minutes to see if a SoFi Law School Loan might help you pursue that dream of becoming a lawyer.

Learn more about private student loans for law school with SoFi.



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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.


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

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. 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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Are We in a Double-Dip Recession?

The COVID-19 pandemic and social-distancing strategies used to curb the virus’ spread plunged the US economy into recession in February 2020, marking the end of the longest bull market in American history. The stock market took a tumble, hitting a low in late March. But since then, amid government stimulus designed to minimize the economic impact of the pandemic, stocks have taken back much of the ground they lost.

Will rising stocks, the easing of social distancing restrictions, and the return of millions of people to work spell a quick end to the recession? Possibly. But it’s also possible that we could be in for a double-dip recession. A double-dip recession is one in which the economy enters recession, with a brief recovery before the economy enters recession for a second time. Here’s a look at what that could mean.

Economic Recessions 101

Generally speaking, a recession is a period of economic decline. It can be accompanied by a rise in unemployment, a loss of consumer confidence, drops in income and spending, increased business failures, and, of course, falling stock markets.

There have been 13 recessions since the end of World War II, including the current recession, which began at the end of February and early March as COVID-19 spread across the United States. The economy began to contract as states issued stay-at-home orders, stores and restaurants closed, and travel nearly ceased.

Recession is a natural part of the economic cycle and, historically speaking, the economy has always recovered.

What Shapes Can Recovery Take?

Recovery from recession can take a few different forms, including V-shaped, U-shaped or the double-dip (W-shaped) recovery.

A V-shaped recovery is the best case scenario in which there is a sharp downturn and then the economy rebounds quickly. If you were to graph this type of downturn and recovery it would look like the letter V.

A U-shaped decline and recovery represents a slow economic growth, in which the economy takes months, if not years to return to pre-recession heights. Imagine taking the graph of a V-shaped recession and spreading the bottom out. The Great Recession of 2007–2009, which lasted for 19 months, is a good example of a U-shaped recession.

A double-dip, or W-shaped recession and recovery occurs when the economy enters recession twice in quick succession. An initial recovery occurs relatively quickly, spurred on by government stimulus. However, a second dip occurs that disrupts the recovery process. This second dip could be spurred on by a number of factors, including the end of monetary and fiscal stimulus, ongoing unemployment, a drop in industrial output, falling GDP, or other economic shocks.

When Was the Last Double-Dip Recession?

The last time a double-dip recession occurred in the US was between 1980 and 1982. The scene was set for the first recession of 1980 by monetary policy of the 1970s. Policymakers believed that they could lower unemployment by controlling inflation. This belief led to what was known as “stop-go” monetary policy, which alternated between fighting high unemployment and high inflation.

When the Fed was in “go” time, it would lower interest rates to free up cash for businesses, which could theoretically start to employ more people. When it was in “stop” mode, the Fed would raise interest rates to try and fight inflation. Unfortunately, this strategy didn’t work, and unemployment and inflation rose together during the period.

In 1979, Paul Volcker became the chairman of the Fed and helped squash the cycle of inflation and unemployment by raising the interest rate to 20%. Though this move had some benefits, it also aided in the recession of 1980.

The economy recovered relatively quickly heading into 1981. Though GDP rose, unemployment and inflation remained hig. In response, the Fed tightened the monetary supply and the country plunged back into recession in late 1981. Volcker was determined not to back down from his monetary policy despite increasing criticism from Congress and the Treasury Department, saying “We have set our course to restrain growth in money and credit. We mean to stick with it.”

Eventually, the economy recovered after inflation was brought under control and unemployment fell, ushering in a new era of relative economic stability.

Are We Headed for Another Double Dip?

The movements of the market and the economy can be difficult to predict. No one knows for certain how the recovery will shape up. But some experts say that a double-dip recession is possible again. For example, if states reopen too quickly, relaxing social distancing rules, there could be a resurgence of COVID-19 that leads to another government shutdown.

Congress provided trillions of dollars in aid to help prop up the economy through the CARES Act, which offered direct payments to citizens and loans to small businesses to help keep them afloat.

Yet, experts worry that the government could withdraw its economic aid programs too soon, which would leave the recovery too weak to stand on its own.

Other experts believe that while monetary and fiscal stimulus from the federal government may encourage a short-term, V-shaped recovery, such a recovery would not factor in damage to business balance sheets, sales and profitability, which may take longer to show up and for investors to notice the damage.

It’s unclear what would happen should another dip occur. Would Congress be prepared for a second round of bailouts, for example? Do businesses have enough cash to support them through a second dip, or would more businesses fail? Will consumer confidence fall, making it even more difficult for the economy to bounce back?

Preparing for a Double-Dip Recession

While a double-dip recession can be hard to predict, there are things investors can do to make sure they are prepared.

First, it may be prudent that investors have enough saved in an emergency fund. It is recommended to put away at least three to six months worth of expense. This may help ride out difficult financial periods and make it less likely they’ll need to withdraw money from the market while stocks are down.

Second, investors may want to evaluate how diversified their investment portfolios are. Not all investments will perform the same way during a recession. Some may be up, even as others are down. A diversification strategy allows individuals to spread their money out across asset classes—such as stocks and bonds—and sectors to help reduce the risk that poor performance from any given stock will drag their portfolio down.

Finally, talking to a financial advisor can go a long way in helping create a financial plan to help weather the current and future big recessions. SoFi financial planners are available to members—at no additional cost—to advise them according to their individual financial needs.

Visit SoFi Invest® to learn more.


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

SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, LLC and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.


Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

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