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You’ve done it all. You worked hard in your high-school classes, prepped for and took the SAT/ACT, and spent countless hours doing extracurricular activities. And, now, it’s time to write the dreaded college application essay. This is your chance to pour your personality and point of view into an essay that could shape the next phase in your life.

No pressure, right? It’s common for high school students to feel overwhelmed by the whole application process, especially if you’re unsure how to write a college essay. You’re not alone, as many teens dread having to write about themselves in a personal statement. To help calm your nerves (and make the process a little less intimidating), here’s a closer look at what the college essay is all about, plus some simple tips for writing a compelling application essay.

How Personal Statements Differ By School

The number of colleges you apply to can impact how many personal statements you’ll need to write. Before you begin the essay-writing process, you’ll want to review the personal statement requirements for each school you plan to apply to. Some colleges have the same essay requirements, while others might request statements tailored to a school-specific prompt.

When looking at essay requirements from different school, here are some things to consider:

•   How long should this college essay be?
•   What is the essay prompt or topic asking?
•   What questions are they looking to have answered?
•   What does this college or university value?

Different schools will often ask applicants to respond to the same or similar essay topic. In this case, it’s possible to submit one personal statement to multiple universities. In other instances, you might simply need to make small tweaks to an already drafted essay.

Colleges that are all part of the same university system — such as state schools, like those under the California State University umbrella — tend to share applications and essay requirements. (In practice, this means applicants won’t need to write individual essays for each school within that system.)

Essay requirements for private schools can vary. If you’re applying to schools that don’t use the common app (more on that in a minute), you may need to submit a completely custom application to each school. Some private schools (such as religiously-affiliated schools) may look for shared values to be reflected in a student’s application and essay.

Fortunately, many schools accept the Common Application in order to simplify the application process and support time-crunched students. The Common App represents almost 900 public and private higher education institutions across the world. Its standardized application allows students to apply to multiple schools via a single platform. Practically speaking, this might translate into writing just one college essay that multiple schools can then access. Typically, the Common App offers seven essay prompts for the required 650-word personal statement.


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

College Application Essay Tips

Before putting pen to paper or fingers to the keyboard, it can help to understand what admissions offices look for in a personal statement, and how to write a college essay that gives voice to who you are. Some pre-planning can also make the application process feel less confusing and the essay-writing process more fun.

What follows are some useful tips for writing a stronger college application essay.

Tip #1: Start Early

The sooner you can begin writing your college essay (or in some cases multiple essays), the more time you’ll have to polish and refine. The time it takes to write a college essay will vary greatly by the student, as well as which schools they are applying to. You may need to only write one essay that you can submit to multiple schools, or you may need to write half a dozen custom essays for your applications.

Generally, it’s a good idea to start the process at least two months before your first deadline — that should give you ample time to brainstorm, write, and edit your essays. Ideally, you’ll want to start the process over summer vacation. This will help alleviate stress during the school year and give you even more time to perfect your essays.

Starting the personal statement earlier not only gives you extra time for fine-tuning the wording, it also allows ample time for starting over (if need be). Starting over may sound like the last thing you’d want to do when applying to college, but it’s an option that many value — a chance to rework their personal story.

A lot of college applicants know exactly what they want to write about. But, after beginning the essay-writing process, some realize that the topic they picked just isn’t strong enough to stand on its own. Alternatively, some applicants find that starting on a given prompt actually leads them towards a topic or essay idea.

Either way, starting early helps ensure you have enough time to mull over what to write about and how exactly to say it in a clear and compelling way. It also gives you time to simply sit and brainstorm essay ideas and create a few potential personal statement outlines.

Even with clear essay prompts, you may need a little extra inspiration to jump-start the essay-writing process. You may find it helpful to search online for and read college essay examples that helped real students get into their dream schools. These real-life examples can serve as models for how to present a personal story and organize an essay that commands attention.

By starting the writing process in advance, you’ll have plenty of time to ink a few drafts, ask for feedback from family and teachers, and make any necessary tweaks — something that’s especially key when applying to schools with different essay requirements. The whole essay-writing process can be far more enjoyable (and, ideally, more impactful) when applicants don’t feel like they’re up against a clock that’s quickly ticking down.

Recommended: Important College Application Deadlines

Tip #2: Step Away From Your Application

When writing a personal statement for college applications, it’s a good idea to consider carefully who will read the essays (and what the admission committee is looking for). Try to put yourself in the shoes of the admissions counselors. After reviewing the non-essay portion of your application, admissions officers will typically have a clear sense of your previous coursework, grades, volunteering, and extracurricular activities.

So, when deciding which essay topic to write about, it can be helpful to ask yourself: “Would they already know this about me just by reading the rest of my application?” The whole point of the personal statement is to humanize the accomplishments that get listed elsewhere in the application. Because of this, it’s often advisable to go beyond repeating the resume items mentioned in other sections of the application in the essay.

College admission counselors want to get to know the person behind those accomplishments (not to read another laundry list of achievements). The essay is your chance to share who you are and how you view the world.

Recommended: 10 Ways to Prepare for College

Tip #3: Identify What Type of Essay You Need to Write

Typically, college applicants will encounter three different types of essay questions:

•   the “you” prompt
•   the “why us?” topic
•   the “creative” question

The “you” style question tends to ask students to share more personal details or life experiences in the essay. Such personal narratives can help colleges and universities to learn what drives, inspires, and shapes individual applicants.

The “why us?” prompt seeks to understand why a student is choosing to apply to a specific school. The admission officer here is trying to gauge how committed each student is to their individual institution. It’s a chance to demonstrate an understanding of a school’s core values and for the applicant to specify why they want to attend that university in particular (and not another one).

The “creative” prompt usually serves to evaluate a student’s creative thinking and writing skills, all while reviewing an applicant’s knowledge base and education.

Before writing any college essay, it’s important to identify exactly which type of question you’ll be answering and how best to communicate who you are in a concise, non-cliched way.

Recommended: The Ultimate Guide to Liberal Arts Colleges

Tip #4: Focus on What Matters to You

To really wow admissions officers in the college essay, you might try to tap into your passions, personal experiences, and interests that go beyond high school academics. It can be helpful to step away from school accomplishments and bring up topics such as a life experience that left a lasting impression, a cause you care deeply about, or a personal relationship that shaped you.

It can be important to reflect — not just recount or summarize — during the essay writing process. In order to stand out amongst thousands of other talented applicants, you may want to go beyond a factual retelling of your experiences to craft a thoughtful assessment of why a given topic matters to you as an individual.

Recommended: College Planning Guide for High School Students

Tip #5: Find a Trusted Reviewer

You don’t necessarily have to shell out big bucks on a private tutor or writing coach to review your college essays (although there’s nothing wrong seeking one out ). Before submitting an essay, you may want to invite a trusted teacher, family member, or friend to read the essay over and offer comments or questions. When asking for detailed feedback, here are some helpful questions to ask a reviewer to keep in mind:

1. Are there any spelling or grammar mistakes I need to change?
2. Is the organization of my essay easy to follow?
3. Did you have any questions while reading that my essay didn’t answer?
4. Did the content capture your attention or was it difficult to finish the entire essay? Why?
5. Where is there room for improvement?
6. Is any section confusing or unclear?

Having a handful of trusted eyes review your essay can help you draft a more impactful personal statement. However, you may want to avoid inviting too many editors to comment on an essay that’s still being drafted. Writing is somewhat subjective. So, receiving a lot of competing opinions might leave you feeling flustered or confused about what to change.


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

You Got In. Now What?

Congratulations! All that hard work and pre-planning paid off. Your college essay really knocked the socks off the admissions officers. Once you’ve received all of your college acceptance offers, you’ll be able to decide which college is the best option for your future plans. It’s likely how much it will cost to attend college might play a factor in your ultimate decision.

Colleges and universities offer different financial aid packages, which will impact your cost of attendance. Financial aid may include grants, scholarships, work-study, and federal student loans (which may be subsidized or unsubsidized). Your financial aid package is based on the information you provided in the Free Application for Federal Student Aid (FAFSA).

If there are still gaps in funding, you also have the option of seeking a private student loan. These are available through private lenders, such as banks, credit unions, and online lenders. Rates and terms vary, depending on the lender. Generally, borrowers (or cosigners) who have strong credit qualify for the lowest rates.

Keep in mind, though, that private loans may not offer the borrower protections — like income-based repayment plans and Public Service Loan Forgiveness — that automatically come with federal student loans.

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.

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

SoFi 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.

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.

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.

SOIS0823031

No doubt you’re aware that sending a child to college is expensive. The current cost of attending a private college is $55,840 per year for students who live on campus ($38,768 of it on tuition and fees), according to the Education Data Initiative. Public universities are generally more affordable, with tuition and fees averaging $9,678 per year (for in-state students) and $27,091(for out-of-state students). But those numbers don’t include room and board.

As a parent, sometimes just thinking about the cost of college for your kid (or kids) can feel bleak. Fortunately, there are a number of college fund options that can make it easier to save a sizable sum by the time your child goes to college. Generally, the earlier you start, the better, but it’s never too late to get going. Read on for a closer look at how to set up the best type of college fund for your child.

How to Set up College Funds: Getting Started

When it comes to setting up a college fund, there are a few savings plans and investment accounts that are specifically designed to help people save for their child’s education expenses. Here’s a closer look at your options.


💡 Quick Tip: SoFi offers low fixed- or variable-interest rates. So you can get a private student loan that fits your budget.

529 Plans

These accounts, also known as qualified tuition plans, are named after an IRS code section and give parents the option to save for college in the name of a child while providing certain tax advantages.

There are two kinds of 529 Plans: prepaid tuition plans and education savings plans.

Prepaid tuition plans let you buy future credits or course units at participating colleges or universities. These credits are used to help cover the cost of tuition for the beneficiary. Most prepaid tuition plans have residency requirements and are often sponsored by state governments.

Education savings plans are investment accounts that can be used to save for the beneficiary’s qualified education expenses. The funds can be used to pay for higher education or private elementary or high schools. A 529 plan allows your savings to grow tax-free, and some states even offer a tax deduction on your contributions.

If your child decides not to go to school, it’s possible to roll the account over into the name of another family member. If the funds aren’t used for education-related expenses, there may be taxes and penalties.

Generous family and friends can also contribute to a child’s college savings plan. They may choose to make deposits to an existing 529 account or set up one themselves, naming a beneficiary of their choosing.

Recommended: Benefits of Using a 529 College Savings Plan

Coverdell Education Savings Account

This account has more limitations but may work well for some families. Individuals who have a modified gross adjusted income (MAGI) that falls below $110,000 ($220,000 if married and filing jointly) may be eligible to save for college using a Coverdell Education Savings account.

You can contribute up to $2,000 for a single beneficiary in a given year. Funds saved in this type of account can be used for eligible elementary and secondary expenses, in addition to higher education expenses. Contributions are made after taxes and must be made in cash. Typically, the funds can be withdrawn without a fee if they are used for qualified education expenses.

Recommended: Paying for College: A Parent’s Guide

The Uniform Gift to Minors Act (UGMA) Account

This custodial account allows your child to own stocks and mutual funds. The custodian still controls the account until the minor reaches legal age. Note that it’s not tax-free.

Annual contributions that exceed $17,000 ($34,000 for a married couple) may be subject to a gift tax. It’s possible that a UGMA may reduce the amount of financial aid eligibility. Additionally, there is no penalty should the funds not be used for education expenses.

Roth IRA

Although generally used for retirement savings, a Roth IRA can be used to pay for the cost of college. Contributions to Roth IRA are made with after-tax dollars but earnings grow tax-free.

Generally, to make fee-free withdrawals from an IRA, the account holder needs to be at least 59 ½ years old. However, If you made the first contribution to your Roth IRA at least five years before, you can also withdraw the growth for qualified education expenses, including tuition, books, and supplies.

Keep in mind that, while there may not be an early withdrawal fee, the earnings withdrawn may still be subject to income tax.

Easing the Financial Burden

Even after years of diligent saving, paying the full cost of college tuition isn’t affordable for some families. Fortunately, there are a few options to fill the gaps and help parents and students pay for college.

Students getting ready to start college or those who are already enrolled could look into options like scholarships, grants, or private student loans.

You’ll want to be sure to fill out the Free Application for Federal Student Aid (FAFSA). This is the first step in qualifying for federal aid, including scholarships and grants, work-study, and federal student loans.

Scholarships

These can be a powerful asset when paying for college since it’s money that doesn’t have to be paid back.

Scholarships are typically merit-based and can be offered through a variety of different types of organizations like local nonprofits, corporations, or even sometimes directly from universities. There are a number of searchable databases that compile different scholarship opportunities.

Grants

In addition to scholarships, there are thousands of grants available to students. These grants are issued by the federal government, the Pell program, and individual states. Some are need-based, while others are merit-based. To find out if you qualify and to become eligible for grants, you need to fill out the FAFSA.

Work-Study Programs

The federal work-study program provides part-time jobs for undergraduate, graduate, and professional students with financial needs. These jobs allow them to earn money to help pay education expenses. To be eligible for work-study, you must fill out the FAFSA.

Student Loans

There are two types of student loans: federal and private. Federal student loans are awarded as a part of a student’s financial aid package and can either be subsidized or unsubsidized.

Subsidized Federal Student Loans

Subsidized student loans are awarded to eligible undergraduate students based on need. The federal government covers the interest on these loans during the time the student is in school at least half-time, during the six-month grace period after leaving school, and during deferment periods.

Unsubsidized Federal Student Loans

Unsubsidized student loans are not awarded based on financial need, and are available to both undergraduate and graduate students. Interest on these loans begins to accrue as soon as the loan is disbursed. If the borrower chooses not to pay the interest while in school, during grace periods, or while in deferment, the interest will be added to the loan principal.

Private Student Loans

Private student loans are available through private lenders, including banks, credit unions, and online lenders. Typically, for someone to get a private student loan, lenders will evaluate the borrower’s credit history, which isn’t the case with most federal student loans. This is why some borrowers rely on a cosigner to secure private student loans.

Many private student loans require payments while the student is still in school, but some do allow you to defer payments until after you graduate (interest will continue to accrue, however.)

An Alternative Way to Finance College

Some parents might consider taking out a parent-student loan to help their kids pay for college. The federal government makes Direct PLUS loans available to parents and graduate students.

Parent PLUS Loan interest rates and fees are set by the Education Department and are higher than other types of federal student loans. The interest rate for the 2023-2024 school year on a Direct PLUS loan is 8.05% and is fixed for the life of the loan.

Some private lenders also offer parent student loans. Private parent loan interest rates can be fixed or variable and are based on the borrower’s creditworthiness. Private loans may offer lower rates than federal PLUS Loans for well-qualified applicants.


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

The Takeaway

There’s no time like now to start saving for college. There are a variety of accounts that are specifically designed to help families save for their children’s future college education, including 529 savings plans and Coverdell Education Savings Accounts.

Beyond savings, students and their families rely on things like scholarships, grants, and student loans to help cover the cost of higher education.

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.

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

SoFi 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.

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.

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.

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

SOIS0823040

Refinancing your student loans can be an excellent way to save money on interest, lower your monthly payment, or consolidate student loan debt. However, refinancing with a private lender makes it so you lose access to federal perks, such as federal loan forgiveness programs. This is true whether you choose to refinance with or without a cosigner.

A cosigner is someone who takes on loan repayment responsibility if the primary borrower falls behind on payments. If you want to refinance without a cosigner, you must meet the loan criteria on your own. Without a cosigner, you will also be 100% responsible for the loan. If you default on payments, it could impact your credit.

If refinancing seems like a reasonable course of action to make your student loans more manageable, it’s best to understand what it looks like to refinance student loans without a cosigner. Here’s what you need to know.

What Does It Mean to Refinance Student Loans Without a Cosigner?

Refinancing your student loans means you take out another loan with a refinance lender to pay off your outstanding student debt balance. You then make monthly payments to the new refinance lender. The goal of refinancing is to save money by qualifying for a lower interest rate and more favorable terms. Be aware, though, that refinancing disqualifies you from federal student loan forgiveness programs.

Like other types of credit, you can apply for a student loan refinance with a cosigner. Borrowers who can’t qualify independently for credit typically apply with a cosigner who can boost their application odds and help them qualify for the most competitive rates. Additionally, the cosigner takes on the responsibility of the debt. If you default on your loan payments, the cosigner will inherit the responsibility of repayment.

When you refinance your student loans without a cosigner, it means that you’re fully responsible for the loan. It also means that you must meet the approval requirements, such as having a good credit score and being in good financial standing.

Benefits of Refinancing Student Loans Without a Cosigner

Refinancing your student loans without a cosigner comes with a few benefits.

Financial Independence

Refinancing student loans without a cosigner is a good way to build financial confidence. Applying for and making payments on your refinance loan may give you a sense of accomplishment. The confidence you build from paying off your refinance loan can trickle into other aspects of your life and set you up for a financially secure future.

Not only that, but repaying student loans can help you build credit as long as you make your payments on time each month.

Recommended: How Do Student Loans Affect Your Credit Score?

You’re Solely Responsible for the Debt

If you choose to refinance your student loans without a cosigner, you’re allowing yourself to build your credit and take full responsibility for your debt.

When you refinance with a cosigner, you’re both equally responsible for the debt. If you make your payments on time, this can be a good thing. However, you both may experience financial consequences if you default on your student loan payment. Since the cosigner is also responsible for the debt, default could hurt both of your credit scores and chances of getting new credit.

Damaging your cosigner’s credit could cause a rift in your relationship, and no one wants that. If you refinance without a cosigner, any financial distress will only impact your finances.

Downsides of Refinancing Student Loans Without a Cosigner

While refinancing your student loans without a cosigner can improve your financial confidence, there are also some drawbacks to not applying with a cosigner.

Potentially Higher Interest Rates

Your credit score helps lenders determine your interest rate. Usually, those with the highest credit scores get the most favorable rates. Because of that, including a cosigner with excellent credit on your loan application can be advantageous, even if you meet the eligibility criteria yourself. A cosigner can enhance your creditworthiness and reduce the perceived risk, making you a more attractive borrower. This could result in a lower interest rate being offered to you.

Remember, the lower the interest rate, the more money you can save on your loan.

Can Be Harder to Get Approved

Finding a loan can be challenging if you don’t meet a lender’s refinance eligibility requirements. Adding a cosigner helps improve your odds because they take on the risk of the debt, too.

You’ll Lose Access to Federal Benefits

When you refinance your student loans with a private lender, whether you use a cosigner or not, you lose access to federal protections. For example, if you’re struggling to pay your federal student loans, you can enroll in an income-driven repayment plan. With this plan, your payment is based on your income and your family size, possibly bringing it down to zero. Make sure you don’t foresee yourself ever needing this or other federal benefits before deciding to refinance your student loans.

How to Refinance If You Can’t Find a Cosigner

When you refinance your student loans without a cosigner, you must provide essential information to prove your eligibility. Most lenders require borrowers to be 18 years or older, be employed or have income from another source, and have a decent credit score. Here are some other requirements it’s important to be aware of.

Qualifying With Your Own Credit Score

Lenders use various factors to determine what credit score makes you eligible for a refinance loan. The FICO® credit score scale ranges from 300 to 850, and those with the highest scores will qualify for the most competitive rates and terms.

Typically, lenders require primary borrowers to have at least a 670 credit score to qualify. If your credit score isn’t quite there yet, it may serve you best to refinance your student loans with a cosigner.

Debt-to-Income Ratio Requirements

Another factor lenders consider is your debt-to-income ratio, or DTI. This ratio informs lenders about the proportion of your monthly income utilized to repay debts compared to the amount of income that flows into your household.

To calculate your DTI, add up your monthly debt and then divide by your income before taxes (gross income). The lower your DTI, the lower the risk you’ll be to lenders. Ideally, you’ll want a DTI below 40%. If your DTI exceeds this amount, focus on paying down debt before you refinance student loans without a cosigner.

Employment Status and Income

To qualify for a student loan refinance without a cosigner, you must either:

•   be presently employed,

•   generate revenue from alternative sources,

•   or have an employment offer scheduled to commence within the next 90 days.

But remember, all lenders use different employment criteria to determine eligibility. Make sure you check with your lender to find out what they require.

Length of Credit History

Lastly, your credit history plays a role in your refinance loan approval. Your credit history includes your total debt, credit accounts (past and present), and your payment history. In addition, your credit history helps lenders determine how responsible you are with credit.

Tips on Refinancing Student Loans Without a Cosigner

Fortunately, it’s possible to refinance student loans without a cosigner. Here are a few tips to get you started.

Find a Lender With an Alternative Credit Check

Suppose you’re struggling to obtain approval for a loan without a cosigner. In that case, you may consider searching for a lender that employs an alternative credit screening process. Some lenders, for example, might provide a different pathway to approval that involves assessing your academic achievements, area of study, likelihood of graduation, and projected income to ascertain whether you qualify for a loan or refinancing.

Note that if you choose to use a lender with an alternative credit check, it could result in a higher interest rate for your loan refinancing.

Build Your Credit Score

Your credit score is one of the most important driving factors of loan approval. Usually, lenders want to see a credit score that hovers around 670 to qualify for a student refinance loan. If your credit score is less than 670, you may not qualify for the loan or you could receive a higher interest rate, which would defeat the purpose of refinancing.

It’s a good idea to take the time to build your credit before refinancing. Making on-time payments and paying down debt are two ways to do so.

Then, once you build your credit score, you can apply for a refinance loan and receive a more favorable rate.

Ensure You Have a Stable Income

Another critical factor lenders look at to determine your refinance loan approval is your income. The minimum income threshold varies across lenders, but typically lenders want you to make at least $20,000 annually.

If you just graduated college or are looking for a new job, you may need to hold off applying for refinancing until you have a stable income and can afford the new monthly payment.

Recommended: Student Loan Refinancing Calculator

Compare Lenders Before Applying

Student refinance loan criteria vary by lender, so comparing your options can increase your chances of approval and help you secure the most favorable rates and terms.

Most lenders will first prequalify you for the loan, which allows you to review the projected interest rates and conditions without committing to the loan. Prequalification only requires the lender to complete a soft inquiry of your credit, meaning it won’t impact your credit score.

Recommended: What’s the Difference Between a Hard and Soft Credit Check?

Get a Cosigner Release on Your Student Loans

Another option is to proceed with a cosigner and, after that, seek a cosigner release for your student loan. This release implies that the cosigner is discharged from the loan obligation if you meet specific criteria, such as fulfilling a minimum payment requirement.

After the release is approved, the cosigner is no longer held responsible for your debt if you default on your loan.

Refinancing Student Loans With SoFi

You can refinance your student loans without a cosigner, but you must meet the lender’s requirements. Most lenders require a credit score of at least 670 and a debt-to-income ratio below 40% to qualify for the best rates. If you have both of those, refinancing without a cosigner is worth considering.

SoFi offers a fast, easy online application, live customer support, no application or origination fees, and no prepayment penalties.

FAQ

Does refinancing a student loan release the cosigner?

Yes. When you refinance, you can remove the existing cosigner from the previous loan.

Can you refinance student loans without a cosigner?

Yes. As long as you meet the approval requirements, such as being employed, having decent credit, and having an income source, you can refinance your student loans without a cosigner.

Is it more difficult to refinance student loans without a cosigner?

The difficulty of approval depends on your financial situation. You may be fine qualifying without a cosigner if you have excellent credit and steady income. On the other hand, if your credit needs work or you’re unemployed, you may not qualify without a cosigner.

Photo credit: iStock/fizkes

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

HR pros know that helping employees with debt, particularly student loan debt, is a key ingredient to building financial wellness in the workforce. With 44 million Americans carrying a total of 1.7 trillion in student debt, it’s the rare employer that doesn’t have a significant number of employees with substantial student loans.

Not surprisingly, many HR leaders are looking at how they may be able to help. In the Employee Benefit Research Institute’s 2022 Financial Wellbeing Survey, nearly three-quarters of employers said they currently offer or plan to offer student loan debt assistance or tuition reimbursement programs.

Despite the need and desire, implementing these benefits can be challenging. Recent legislative and executive actions concerning student loan repayment and forgiveness have been confusing. Employers are naturally wondering what role they should play in student debt repayment and what benefits can best help.

Here, we’ll look at two important student debt repayment benefits, how they work, and how they can best be implemented to attract and retain talented workers and enhance overall financial wellness among your employees.

Recommended: What Employers Need to Know About Student Loans in 2023

Student Loan Repayment Benefits

Under the Coronavirus Aid, Relief and Economic Security (CARES) Act, employers can contribute $5,250 annually per employee toward tuition reimbursement or student loan payments on a tax-exempt basis. That means employees won’t pay income tax on contributions made by their employers toward educational assistance programs, yet the employer also gets a payroll tax exclusion on these funds.

Employers can make the payments directly to their employees’ student loan servicers or lenders, or they can provide them to the employees themselves, who can then put them toward their student debt.

The CARES Act provision was set to expire at the end of December 2020, but Congress passed the Consolidated Appropriations Act before that happened, extending the tax break through the year 2025.

Here’s what to consider when offering student loan repayment benefits.

How Much Will You Offer?

The maximum allowed annually on a tax-exempt basis is $5,250 per employee but employers do not have to provide that much. Many organizations start with a $50 to $100 a month payment. Even this seemingly small amount can help employees save thousands of dollars in interest over the life of the loan if directed toward the principal.

The amount you’ll contribute likely depends on the overall costs you are willing to dedicate to this benefit. An employee survey or other demographic data can help you determine how many of your workers carry student debt and would likely qualify for this benefit, which can help you understand the cost. In addition, you may want to look at future hiring trends for the next several years to estimate the number of new employees likely to join the program.

Will You Tie Benefits to Tenure?

Some employers require a time commitment — such as three to five years at the company — in exchange for the student loan payments. Others may simply delay the benefit for new employees for six months or a year.

In determining the qualification surrounding your program, you’ll need to weigh the immediate need for student loan relief among your workers and your need for higher retention and recruiting rates.

Is Your Paperwork in Place?

A program document outlining the design of the student loan contribution plan that complies with IRS regulations is necessary to implement this benefit.

You’ll also need to make sure this benefit works with any other existing qualified education assistance programs you may offer, such as tuition reimbursement.

The $5,250 tax-exempt limit applies to all tuition programs. So, if an employee receives reimbursement for a certification class, for example, and is eligible for student loan forgiveness payment for their undergraduate degree, the total of the two benefits per year for that employee cannot exceed $5,250. Anything above that amount will be considered taxable wages.

Matching Contributions for Student Loan Repayment

The Secure Act 2.0, which President Biden signed into law late in 2022, is designed to encourage more American workers to save for retirement. The act also formally authorizes matching contributions for student loan repayment, allowing companies to match employees’ qualified student loan payments with contributions to their retirement accounts, including 401(k)s, 403(b)s, SIMPLE IRAs, and government 457(b) plans.

Many HR leaders see the benefit as a win-win for employees. It allows them to pay down student debt while still participating in retirement savings, hopefully starting at an early age. The provision also benefits employers looking to offer a creative benefit to retain and recruit workers, as it removes many of the preexisting legal barriers and administrative complexities that discouraged some companies from adopting a student loan repayment feature.

Here’s what to know about the matching contributions for student loan payments program.

The Rules Are (Mostly) the Same for All Matches

A student loan matching benefit must abide by all the rules of a traditional match. This means that the eligibility criteria, matching contribution rate, and vesting schedule you apply to matching contributions on student loan payments must be the same as those you apply to elective deferrals.

There is, however, one small difference: You are allowed to deposit the matching contributions to the employee’s 401(k) plan account less frequently than regular matching contributions, as long as you contribute at least annually.

Only Qualified Student Loan Payments are Eligible

Student loans must be qualified for repayments to be matched. That generally means any loans borrowed solely to pay for higher education expenses for the employee, their spouse, or a dependent. This includes refinanced student loans but not loans from a relative or retirement plan.

Loans eligible for repayment must have been used to pay for qualified education expenses including tuition, fees, books, supplies, equipment, and room and board for students enrolled at least half-time.

To receive a match, employees simply need to certify annually that they have made qualified student loan payments and the amount of these payments. Plan sponsors are allowed to rely on an employee’s certification and do not need to conduct an independent evaluation as to whether the payments meet all of the requirements to be qualified student loan payments.

Implementation Date

The match becomes available in 2024 for plan years starting after December 31, 2023. This gives employers some time to research employee needs and draft a plan. It also provides time for the IRS to offer some additional details on the implementation and administration of the matching provision.

Recommended: How HR Pros Can Ease The Return to Student Loan Repayment

The Takeaway

Benefits that can help ease the burden of student debt are important tools employers can utilize to recruit and retain talent and promote financial wellness among employees. This is especially important now that the payment pause implemented during the pandemic is ending and workers will once again be facing monthly student loan payments. Student loan repayment and matching contribution programs are two benefits employers may want to consider in this current environment.

SoFi at Work can help. We’re experts in the student lending space. With SoFi at work you have access to platforms and information that will help build the benefits you need to create a successful and loyal workforce.

FAQ

Are student loan payment benefits tax-exempt?

Yes, with some qualifications. The CARES Act allows employers to provide up to $5,250 annually per employee for student loan repayment on a tax-exempt basis through 2025.

Can employers offer student loan payment matches in retirement accounts?

Yes, a provision in Secure 2.0 (legislation signed into law in 2022) allows companies, starting in 2024, to match a worker’s student loan payment in the form of a contribution to their workplace retirement plan.

What are the advantages of student debt repayment benefits?

Student loan repayment benefits can help attract and retain talented workers. They can also increase productivity among your employees by reducing the stress created by burdensome student debt and boosting overall financial wellness.

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The Ivy League is made up of eight elite private colleges, all of which are based in the Northeast. Being accepted to an Ivy League college is something some students work toward all their lives — but there’s more to gaining admission to these schools than good grades and a long list of extracurriculars.

With admission rates now hovering in the 3.4% to 5% range, there’s a heightened sense of competition among top students in high schools across the country and around the world.

Read on to learn more about Ivy League colleges, including which schools are considered “Ivies,” the benefits of going to an Ivy League college, how much they cost, and ways to make your application stand out.

What Are the Different Ivy League Schools?

Named for their ivy-covered campuses, the eight private colleges that make up the Ivy League have many things in common. However, each school has its own unique reputation and characteristics that attract different kinds of students. Here’s a closer look at these top-ranked schools.


💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

Brown University

Located in Providence, Rhode Island, Brown is known for its humanities programs as well as its Warren Alpert Medical School. Its open curriculum allows for a relatively free-form educational model where students are encouraged to take classes they like without having to accumulate certain requirements. Brown also gives students the option of taking as many classes as they want on the basis of pass-fail.

Columbia University

Located in New York City, Columbia is one of the most diverse Ivy League schools with 46% of undergraduates identifying as students of color. It also has one of the highest percentages of international students at any Ivy League, with 13% of its student body coming from foreign countries. This cosmopolitan college is host to renowned business, journalism, and law schools, and requires students to adhere to its core curriculum, which focuses largely on liberal arts.

Cornell University

Located in Ithaca, New York, Cornell is one of the largest Ivy League universities, occupying a sprawling campus in this scenic upstate town. Known for its agriculture and engineering schools, Cornell also has strong Greek life and a wide range of athletic programs.

Dartmouth College

Located in Hanover, New Hampshire, Dartmouth is the most rural of the Ivies, drawing a student body interested in the outdoors and Greek life — around 60% of students participate in sororities or fraternities. Its somewhat smaller student body allows for more one-on-one attention in classes and a strong sense of community on campus.

Harvard University

Located in Cambridge, Massachusetts, Harvard encourages students to take a wide range of courses through their general education requirements, which allows students to broaden their interests and take advantage of intellectual curiosities. The school has 12 residential houses that seek to foster a sense of community in an otherwise imposing setting.

The University of Pennsylvania

Located in Philadelphia, Penn is known for its four distinct undergraduate colleges, including the Wharton School of Business and the College of Arts and Science. Students have the option of taking part in Greek life, and are also encouraged to explore opportunities in the greater Philadelphia area, from internships to the wide array of cultural events available.

Princeton University

Located in Princeton, New Jersey, Princeton University offers either a liberal arts or engineering and applied science degree for undergraduate students, with both programs including general education requirements. Princeton is known for its international affairs and engineering programs, as well as their storied eating clubs, which serve as coed dining halls and social centers for students, and are comparable to non-residential fraternities or sororities.

Yale University

Located in New Haven, Connecticut, Yale University is known for its creative writing and arts programs, as well as a residential college program and an array of secret societies. It’s also home to a renowned graduate drama program and law school.

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Benefits of Attending an Ivy League School

For those who get that coveted acceptance letter, the benefits can be worth the years of hard work it took to get in. From growing your network to gaining access to world-renowned resources and professors at the top of their field, attending an Ivy League school can set students on an accelerated path to intellectual and professional success.

Having an Ivy League school on your resume may open countless doors when it comes to applying for jobs, fellowships, or graduate programs and may provide a leg up when it comes to advancing your career.

The amount of funding available at Ivy League schools can also be a major draw. All Ivy League schools have need-blind admissions policies, meaning that admissions officers will not look at a student’s financial need when considering their application. They also have a promise to meet 100% of demonstrated financial need based on household income.

Brown, Columbia, Harvard, and Princeton take things one step further, packaging aid with no loans for each student. Ivy League schools also have incredible funding opportunities for research and travel for students, allowing them to broaden their interests and perspectives.

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The Cost of an Ivy League School and Options for Paying for Tuition

All of the Ivy League schools are private universities, which usually implies a hefty price for tuition. The average undergraduate tuition for an Ivy League school for the 2022-2023 school year was $59,961, plus room and board. But due to these universities’ impressive endowments, ranging from Brown’s $5.6 billion to Harvard’s staggering $53.2 billion, these schools are able to offer generous financial aid packages to prospective students.

While Ivy League schools do not offer merit-based or athletic scholarships, there are generally a wide variety of need-based scholarships awarded to students depending on their household income.

A student’s household income is equal to the combined gross income of all people occupying the household unit who are 15 years of age or older. Among Brown’s class of 2025, for example, 99% of students with household incomes below $60,000 received an average of $80,013 in annual financial assistance — nearly full rides, including room and board. For families making between $100,000 and $125,000, 98% of students received an average of $56,538 in annual need-based aid.

In addition to aid offered by Ivy League schools directly, students or their parents may choose private student loans to help ease the burden of paying college tuition and expenses.

Students will generally want to exhaust all ffederal student aid options (which include grants, scholarships, work-study, and federal student loans) before considering private student loans. But if there is still a gap between federal student aid and the remaining cost of attendance, a private loan may be an option for some students.


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

GPA Requirements for Ivy League Schools

An impressive grade point average (GPA) is only one aspect of a student’s college application. However, to even be considered for admission to an Ivy League school, students may want to see if their own GPA falls within the average for admitted students. Among the Ivies that release statistics on accepted students’ GPAs, the average weighted GPA is about 4.0, meaning mostly As.

How to Make an Application More Competitive

In addition to a high GPA and impressive SAT and/or ACT scores, prospective students will need to prove themselves in other ways to gain admission to an Ivy League school.

Excelling in advanced courses, like honors and Advanced Placement (AP) classes throughout high school may improve students’ chances of admissions, especially if students show a particular area of interest, like science or humanities.

While in the past, college admissions counselors would advise students to be “well-rounded” candidates, it’s now advisable to develop and demonstrate a passion for a particular subject area, which helps Ivies to build a more overall well-rounded student body.

Students can show their interests beyond academics by taking part in extracurricular activities. By engaging in activities early in high school and growing that interest over time, students show their commitment and enthusiasm for a particular area.

Strong interviews and letters of recommendation can also improve a student’s application, along with a strong personal essay. Ivy League admissions teams look for essays that highlight a student’s best qualities, perhaps expressed through a personal anecdote or description of a unique passion that displays a candidate’s distinctive character.

Hitting the “Submit” Button

Following the tips above may help improve a student’s Ivy League application, helping to gain admission to one or more of the most prestigious universities in the world. Of course, there are many schools that have the same academic rigor of an Ivy League, and it’s generally advisable to sprinkle in one or two “safety” schools for good measure.

But once a student has decided they want to apply to an Ivy League school, determined which is the right one for them, applied for financial aid, and completed their applications, it’s time to hit submit!

The Takeaway

If you’re hoping to attend an Ivy League college, you’ll want to consider each school’s admission rate, along with its particular academic program and financial aid statistics, to determine which is the right school to apply to.

However, it can be helpful to apply to a range of schools, both in terms of admission’s standards and tuition costs. This will give you options in case a school’s financial aid package isn’t as generous as you hoped.

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.

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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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