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If you’re currently in the process of planning a wedding, you’re likely enjoying the endless cake samples and making difficult decisions, like whether to have a donut bar or a candy station at the reception.

Unfortunately, wedding planning isn’t just about delicious dessert samples and seating arrangement logistics.

It can be stressful, especially when it comes to figuring out how you’ll pay for all those savory and sweet treats and gift bags for your guests—let alone the rest of it like, you know, a dress, the actual reception hall, a minister, food, and an open bar if you’re lucky.

According to The Knot’s 2018 Real Weddings Survey, the costs of planning a couple’s special day now averages $33,931, though this number can vary greatly depending on where you live.

Expensive, densely populated cities like New York and Chicago will likely be more expensive than hosting a wedding in a more rural locale.

While there are ways to save on wedding costs—like cutting back on pricey place settings, keeping the wedding parties smaller, opting for a cash bar, and doing a bit of do-it-yourself craft work on flower arrangements—more couples are finding that they need a little bit of extra cash to get them through the wedding planning process. This is especially true when every vendor seems to require an immediate deposit.

That’s why some turn to wedding loans as an alternative to funding their weddings upfront.

Find a venue right out of a Pinterest post, but need a $10,000 deposit by next week to secure it?

Try on the dress of your dreams, then discover it’s $2,500 more than you have in your checking account?

Want the band of your dreams to play but need to plunk down cash to get them?

If your savings are coming up short, an unsecured loan could be just what you need to keep your dream wedding from being derailed. Here’s some more information about the ins and outs of wedding loans to help you decide if it is the right choice for your big day.

What Is a Wedding Loan?

A wedding loan doesn’t come from a wedding fairy godmother with a wave of her wand—although that would make for a better story. Instead, a wedding loan is simply a personal loan that you use to pay for wedding expenses.

So, what’s a personal loan then? A personal loan is just as the name implies—a loan you take out for (almost) any personal reason at all. You could use a personal loan for everything from renovating your home, to consolidating high-interest credit debt, to paying for a vacation or a wedding.

Personal loans are typically given out as one lump sum. For example, a person could take out a $10,000 personal loan for their wedding. They’d receive this payment upfront and could use the cash immediately.

The lender and the recipient would agree upon a repayment plan as part of the terms of the loan. These specific terms will vary by lender but, typically unsecured personal loans are paid back within one to five years.

A personal loan can be either secured or unsecured. With an unsecured personal loan, a lender won’t require a collateral asset. With a secured loan, the lender could require collateral or could require a co-signer on the loan—like a house or other asset of value.

Most lenders also allow borrowers to pay off the loan early, regardless of the loan term. That means if you happen to get a lot of cash as a wedding gift, you could use it to pay on your loan in part or in full.

Consider reviewing the terms and conditions completely before borrowing any loan, while not all lenders do, some may charge a prepayment penalty.

Variable-rate loans may also help save money on interest in the short-term, but it could rise in the long run. Fixed-rate loans mean the interest will remain the same as when the borrower signed on the dotted line, even if other interest rates shoot up faster than the price of a good DJ on a Saturday in the summer.

Considering a Personal Loan for a Wedding?

Personal loans can be a good option for those who have budgeted to pay for their wedding expenses, but just don’t have the cash on hand to cover immediate deposits or a slew of bills at once.

Maybe your parents committed to helping out with wedding costs and promised to send a cash infusion next month, but the florist whose work looks like a living Instagram photo will go with another couple if you don’t book now.

Or maybe you and your betrothed are putting aside a certain amount each month for wedding expenses, but you don’t want to put the catering deposit on your credit card because all the travel rewards points in the world will not outweigh the interest you’ll be charged.

In other words, if you have a good plan for paying your personal loan back and you just need it to bridge the gap, then a personal loan for your wedding might be perfect for you.

However, if you don’t know how you will pay off your loan but you really want a little extra room in your budget to buy that Vera Wang dress, you might want to think twice before signing on the dotted line for a personal loan.

The last thing you want to do is start your marriage off knee-deep in debt you can’t pay back, even if the pictures look amazing.

Pros and Cons of Wedding Loans

Need a little help weighing your options? Here are a few pros to getting an unsecured personal loan to help pay for your big day.

•   Personal loans are typically fast, easy ways to get some extra cash when you have to pay for deposits or cover expenses quickly for a wedding.

•   Many lenders allow you to apply for a personal loan online, making it easy and efficient to secure funding if you qualify.

•   Funds may be available in as little as one business day, depending on the lender. That way you won’t have to wait around to start putting down deposits and checking things off your wedding to-do list.

•   Personal loan lenders typically charge less interest than credit cards. This could make it a more financially viable option for those looking to pay off their vendors without paying extra in interest.

•   Personal loans are one way that could help build your credit over the long-term, if you pay them back on time, which is an excellent gift to give both you and your spouse on your wedding day. But, like all good things in life, personal loans have many downsides. Here are a few cons to be wary of before signing on the dotted line.

•   Personal loans can tempt people to spend more than they can afford. If you take one out, remember you have to pay it all back—plus interest.

•   Some personal loan lenders have prepayment or origination fees. Make sure to check the fine print before agreeing to anything.

•   It’s always a better bet to save up for anticipated expenses rather than financing them. Try to budget and save first, see if your vendors are willing to work out a payment plan, and think about what you really need versus what you want at your wedding.

•   You might be paying off your party years later, with interest. If you still feel like you need extra cash to fund your big day, check to ensure your personal loan has a lower interest rate than credit cards before taking one out.

How Much Can You Borrow for Your Wedding?

To qualify for a personal loan with a competitive rate, you’ll likely need a good credit score and a well-paying job, among other important financial factors, or potentially a co-borrower who has both of those things. Many lenders consider a good credit score to be anything above 700 , though this may vary depending on the scoring model used by the lender.

You might be able to get a loan if your score is below that, though it’s possible you’ll have to pay more in interest or you might qualify to borrow less money.

Things like how much debt you currently have, including student loans or a mortgage, can also impact how much you can borrow. At SoFi, we offer personal loans up to $100,000.

But unless you’re planning a wedding at the Plaza Hotel in Manhattan complete with champagne towers and children dressed as cherubs, it’s unlikely you’ll need that much.

Getting the Funds You Need for Your Wedding Day

Just like any loan, you need to have all your financial information and documents in order before you apply. Be sure to have things like proof of income, bank statements, information about your other debt, your Social Security number, and your identification ready.

With most online lenders, you can get pre-qualified and then decide whether to move forward with the online application. From there, you typically choose your rate, answer any additional questions, send copies of the necessary documentation, and sign the loan agreement all within a day or two.

Again, while saving up for your wedding is probably preferable to taking on debt before you say “I do,” expenses can arise that you may not expect, so knowing what your options are for personal loans can be helpful.

Don’t forget to do your research and understand everything you should be looking for in a lender so that you don’t get stuck with a loan that’s about as appealing as that ugly set of grey serving platters your Aunt Ina bought you for your wedding shower.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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.

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.

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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.

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

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

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

Consolidating Through the Department of Education

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

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

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

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

Refinancing Your Student Loans

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

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

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

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

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

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

Considerations to Think About

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

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

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

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

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

Finding Out Your Potential Savings

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

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Sallie Mae, the private student loan company, used to offer loan consolidation for the loans they issued. But here’s the thing: that’s not happening anymore. Student loan consolidation refers to the process of combining multiple loans into one, in order to have just one monthly payment.

When you consolidate federal loans, through a Direct Consolidation Loan, the interest rate becomes the weighted average of all your interest rates combined, rounded up to the nearest eighth of a percent.

But even without Sallie Mae offering direct student loan consolidation, there are still options available to those with private Sallie Mae loans looking to consolidate or refinance their student loans.

Sallie Mae Ends Loan Consolidation

Sallie Mae began as a government-sponsored entity, but went private in 2004. Then in 2014, the company split into two separate organizations; Sallie Mae is a private student loan lender, and now Navient Corporation helps to service government loans.

If you previously had multiple Sallie Mae student loans, you were able to consolidate them into one Sallie Mae loan. But the company no longer offers loan consolidation—and loan refinancing through Sallie Mae isn’t an option either.

Recommended: Can You Get Your Sallie Mae Loans Forgiven?

Student Loan Consolidation vs. Refinancing

These terms are sometimes used interchangeably, but they do have some important distinctions. Sallie Mae consolidation is no longer offered for their private loans. However, students can refinance their Sallie Mae and other private student loans through another private lender or bank, which would then switch over the management of the new refinanced loan to that lender.

For federal loans, a Direct Consolidation Loan allows you to combine multiple federal student loans into one loan with a fixed interest rate. You might not receive a lower interest rate by choosing to consolidate your loans (because of the weighted interest rate rounded up), but you will only have to make one monthly payment. Private student loans cannot be consolidated via a Direct Consolidation Loan.

Refinancing your student loans is another repayment option to consider. While Sallie Mae does not offer refinancing, other private lenders do, including SoFi. These companies essentially purchase your existing student loans and offer you a new loan to pay them off, with a new interest rate and new terms. Private and federal loans are both able to be refinanced into a private loan.

You can refinance just a single loan, possibly lowering the interest rate, or combine multiple loans to refinance your overall student loan debt. If you refinance federal loans, they become private loans in the sense that you will no longer be eligible for federal repayment plan benefits such as Income-Driven Repayment or Public Service Loan Forgiveness.

Student loan consolidation and refinancing with a private lender can offer the chance to restructure your loans. While consolidation can simplify debt and possibly lower monthly payments, refinancing can help you pay less over the life of a loan with a lower interest rate or different repayment terms. You can calculate what you might save if you consolidate or refinance your Sallie Mae or federal student loans.

Consolidating Student Loans

You may be able to consolidate your federal student loans with a Direct Consolidation Loan. While private Sallie Mae loans will not be eligible, federal student loans serviced by their new company, Navient, may qualify for consolidation. Stafford Loans, Direct Loans, and Direct PLUS Loans are all federal student loans eligible for Direct Loan Consolidation, too.

Consolidation may help make repayment easier to manage, since there will only be one monthly payment to make, rather than multiple payments. You can also choose new loan terms, with the possibility of extending out the repayment term to 20 or even 25 years.

While this can help you manage your monthly bill and possibly lower your payments, you must also remember you may be in debt longer and pay more interest over the life of your new consolidated loan.

Direct Consolidation Loans from the government also take the weighted average of your previous interest rates, rounded up to the nearest eighth of a percent so it’s possible that you will end up with a higher overall interest rate than you had before.

Before you make a decision on what to do with your Sallie Mae loans, could be a good idea to check that your loans are private loans from Sallie Mae, and not federal loans managed by their sister company, Navient, to avoid any confusion.

Considerations Before Consolidating or Refinancing Student Loans

Whether or not you have Sallie Mae or other private loans, or are just considering applying for a Direct Consolidation Loan for your federal loans, it’s important to review your current payment plan and rates before consolidating loans. Ask yourself this: Will you save money overall, or will you wind up paying more over the life of the loan?

Refinancing Your Private or Federal Loans

For those with private student loans, federal student loans, or a combination of the two, refinancing is another option to consider. Unlike consolidation, refinancing with a private lender such as SoFi allows you to combine private and federal loans into one, and it may lower the amount of interest you’re currently paying or lower your monthly payment.

Refinancing may be better for people whose financial situation, including employment, cash flow, or credit, has improved since graduating. And just like with consolidation, refinancing gets you one loan, and one monthly payment, so you no longer have to juggle multiple loan servicers and payments.

No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
$500 Student Loan Refinancing Bonus Offer: Terms and conditions apply. Offer is subject to lender approval, and not available to residents of Ohio. The offer is only open to new Student Loan Refinance borrowers. To receive the offer you must: (1) register and apply through the unique link provided by 11:59pm ET 11/30/2021; (2) complete and fund a student loan refinance application with SoFi before 11/14/2021; (3) have or apply for a SoFi Money account within 60 days of starting your Student Loan Refinance application to receive the bonus; and (4) meet SoFi’s underwriting criteria. Once conditions are met and the loan has been disbursed, your welcome bonus will be deposited into your SoFi Money account within 30 calendar days. If you do not qualify for the SoFi Money account, SoFi will offer other payment options. Bonuses that are not redeemed within 180 calendar days of the date they were made available to the recipient may be subject to forfeit. Bonus amounts of $600 or greater in a single calendar year may be reported to the Internal Revenue Service (IRS) as miscellaneous income to the recipient on Form 1099-MISC in the year received as required by applicable law. Recipient is responsible for any applicable federal, state, or local taxes associated with receiving the bonus offer; consult your tax advisor to determine applicable tax consequences. SoFi reserves the right to change or terminate the offer at any time with or without notice.

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