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It can be challenging to qualify for a personal loan after a bankruptcy, A bankruptcy will remain on your credit reports for up to seven to 10 years, but with effort, your credit scores can be built during that time and beyond.

If you are approved for a personal loan, you likely will pay fees or a higher interest rate than you might have without having a bankruptcy on your credit report.

Read on to learn how bankruptcy works, the pros and cons of filing for Chapter 7 vs Chapter 13 bankruptcy, and how to get approved for a loan with a bankruptcy in your credit history.

How Does Bankruptcy Work?

When a person can’t make payments on their outstanding debts, despite trying to do so, bankruptcy may be an option to have a fresh financial start.

Bankruptcy can be either a liquidation of the debtor’s assets to satisfy creditors or the creation of a repayment schedule that will satisfy creditors and allow the debtor to keep their property instead of liquidating it.


💡 Quick Tip: A low-interest personal loan can consolidate your debts, lower your monthly payments, and help you get out of debt sooner.

Filing for Bankruptcy

Bankruptcy petitions are filed with the bankruptcy court in the debtor’s judicial district. The process is mostly administrative, with minimal time spent in front of a judge — often no time at all unless there is an objection by a creditor. A court-appointed trustee oversees the case.

The debtor must attend a “341 meeting” (named for section 341 of the Bankruptcy Code), at which creditors can present questions and concerns. For Chapters 7 and 13 bankruptcies, which are being discussed here, the remainder of the process differs slightly.

Common Reasons to File for Bankruptcy

Among the reasons people may file for bankruptcy are the following:

•   Medical debt

•   Job loss

•   Credit card debt

•   Divorce or separation

•   Unexpected events (natural disasters, pandemics, etc.)

Can I Get a Loan With a Discharged Bankruptcy?

It’s not impossible to get a loan after bankruptcy, but interest rates may be high and loan terms less favorable than for someone who hasn’t been through a bankruptcy. The negative effect a bankruptcy has on a person’s credit lessens over time, but lenders may not be willing to offer their best rates to someone they perceive as not having been financially responsible in the past.

Factors That Impact Loan Approval After Bankruptcy

There are a few forces that impact getting approved for a loan after bankruptcy:

•   Credit score and history. A bankruptcy can lower your credit score by 100 or 200 points, which can make it challenging to build credit to the level needed to qualify for a personal loan or a loan with a favorable rate.

•   Timing. As noted, a bankruptcy can stay on your credit report for seven to 10 years. There can be a waiting period of one to two years or longer before you can qualify for a loan.

•   Lender requirements. Different lenders have different guidelines. There are some who specialize in lending to those with poor credit.

•   Type of bankruptcy. Some lenders may look more favorably upon those who have a Chapter 13 bankruptcy, which involves repayment of debt, vs. Chapter 7. (Learn more below.)

Two Main Types of Bankruptcy Filings

There are two main types of bankruptcy available to individuals, Chapter 7 and Chapter 13. With both, typically a bankruptcy trustee reviews the bankruptcy petition, looks for any red flags, and tries to maximize the amount of money unsecured creditors will get.

Chapter 7 is the most common type of bankruptcy for individuals, followed by Chapter 13.

Chapter 7 Bankruptcy

This is often called liquidation bankruptcy because the trustee assigned to the case sells, or liquidates, nonexempt assets in order to repay creditors.

Many petitioners, though, can keep everything they own in what is known as a “no-asset case.” Most states allow clothing, furnishings, a car, money in qualified retirement accounts, and some equity in your home if you’re a homeowner to be exempt from liquidation. (Each state has a set of exemption laws, but federal exemptions exist as well, and you might be able to choose between them, a subject a bankruptcy attorney should be able to provide insight on.)

After the bankruptcy process is complete, typically within three to six months, most unsecured debt is wiped away. The filer receives a discharge of debt that releases them from personal liability for certain dischargeable debts.

Are Personal Loans Covered Under Chapter 7?

In most cases, personal loans may be discharged in a Chapter 7 bankruptcy proceeding. A secured personal loan for which collateral has been pledged is included in discharged debts, but the asset put up as collateral will likely be sold to satisfy the debt.

Recommended: Secured vs. Unsecured Personal Loans — What’s the Difference?

The Pros and Cons of Chapter 7 Bankruptcy

A Chapter 7 bankruptcy can create a fresh start for someone struggling to repay their debts, but it’s not a magic wand. Here are some pros and cons:

Pros of Chapter 7 Bankruptcy	Cons of Chapter 7 Bankruptcy
Debtors are free of personal liability for discharged debts.	Some types of debt, such as student loan or tax debt, cannot be discharged.
Certain assets may be exempt from bankruptcy, giving the debtor some property to sustain themselves.	A trustee takes control of the debtor’s assets.
If all of a debtor’s assets are deemed exempt, the bankruptcy is termed a no-asset bankruptcy.	Creditors will not receive any funds from the bankruptcy because there won’t be any assets to liquidate.

Chapter 13 Bankruptcy

This form, aka reorganization bankruptcy or a wage earner’s plan, allows petitioners whose debt falls under certain thresholds to keep their assets if they agree to a three- to five-year repayment plan.

There are three types of claims in a Chapter 13 bankruptcy: priority, secured, and unsecured. The plan must include full repayment of priority debts. A trustee collects the money and pays the unsecured debts, with the individual debtor having no direct contact with the creditors. Secured debts can be handled directly by the debtor.

Once the terms of the plan are met, most of the remaining qualifying debt is erased.

The U.S. Bankruptcy Code specifies that if the debtor’s monthly income is less than the state median, the plan will be for three years unless the court approves a longer period. If the debtor’s monthly income is greater than the state median, the plan generally must be for five years.

Certain debts can’t be discharged through a court order, even in bankruptcy. They include most student loans, most taxes, child support, alimony, and court fines. You also can’t discharge debts that come up after the date you filed for bankruptcy.

Are Personal Loans Covered Under Chapter 13?

Personal loans can be discharged in Chapter 13 bankruptcy, but whether a creditor is likely to be repaid in full depends on if the personal loan is secured or unsecured. Priority claims are paid before any others, followed by secured, then unsecured claims.

The Pros and Cons of Chapter 13 Bankruptcy

Debtors who have assets they’d rather not have liquidated might opt for Chapter 13 bankruptcy vs. Chapter 7, which involves liquidation of most assets. But like any type of bankruptcy, there are pros and cons.

Pros of Chapter 13 Bankruptcy	Cons of Chapter 13 Bankruptcy
Debtors may be able to save their assets, such as their home, from foreclosure.	If the repayment plan is not followed, the bankruptcy could be converted to a liquidation under Chapter 7.
Debtors may opt to make payments directly to creditors instead of through the trustee.	Living on a fixed budget for the duration of the repayment plan will take some adjustment.
Debtors have more options to repay their debts than they might under Chapter 7.	Chapter 13 bankruptcy is more complex than Chapter 7, and may lead to higher legal costs.
Debtors can extend repayment of secured, non-mortgage debts over the life of the plan, likely lowering their payments.	Taking more time to repay the secured installment debt may lead to more interest before it’s paid in full.

Recommended: What Is an Installment Loan?

Will Bankruptcy Ruin My Credit?

A bankruptcy will be considered a negative entry on your credit report, but the severity depends on a person’s entire credit profile.

Someone with a high credit score before bankruptcy could expect a significant drop in their credit score, but someone with negative items already on their credit reports might see only a modest drop.

The good news is that the negative effect of the bankruptcy will lessen over time.

How Long Bankruptcy Stays on Your Credit Report

Lenders who check credit reports will learn about bankruptcy filing for years afterward. Specifically:

• For Chapter 7, up to 10 years after the filing.

• For Chapter 13, up to seven years.

Still, filing for bankruptcy doesn’t mean you can’t ever get approved for a loan. Your credit profile can be positively impacted if you stay up to date on your repayment plan or your debts are discharged — among other steps that can be taken.

You may even be able to begin building your credit during bankruptcy by making the required payments on any outstanding debts, whether or not you have a repayment plan. Of course, everyone’s circumstances and goals are different so, again, always consult a professional with questions.

Some lenders may specialize in offering loans to people who have a bankruptcy on their record (though rates and terms may be less favorable). That said, some lenders may deny credit to any applicant with a bankruptcy on a credit report.

Recommended: What Is Considered a Bad Credit Score?

How Long After Bankruptcy Discharge Can I Get a Loan?

As long as you can find a lender willing to approve you for a loan, there is no specific amount of time needed to wait until applying for one. Often, waiting one or two years will be enough. However, your credit report will reflect a discharge for seven to 10 years, and lenders may not offer favorable terms or interest rates.

Should I Apply for a Loan After Bankruptcy?

Making sure you are in a stable financial situation after bankruptcy is a good idea before thinking about applying for a loan at that time. Having a repayment plan that you can stick to before taking on more debt is imperative. That being said, taking out a loan and repaying it on time and in full can be a good way to help rebuild your credit.

Some pointers:

• Before applying for an unsecured personal loan, meaning a loan is not secured by collateral, it’s a good idea to get copies of your credit reports from the three major credit reporting agencies: Equifax®, Experian®, and TransUnion®. Make sure that your reports represent your current financial situation and check for any errors.

• If you filed for Chapter 7 bankruptcy and had your debts discharged, they should appear with a balance of $0. If you filed for Chapter 13, the credit report should accurately reflect payments that you’ve made as part of your repayment plan.

• Consider getting prequalified for a personal loan and comparing offers from several lenders. They will likely ask you to supply contact and personal information as well as details about your employment and income.

• If you see a loan offer that you like, you’ll complete an application and provide documentation about the information you provided. Most lenders will consider your credit history and debt-to-income ratio, among other personal financial factors.

• You may want to think carefully before considering “no credit check” loans: They typically have high fees or a high annual percentage rate (APR).

💡 Quick Tip: Fixed-interest-rate personal loans from SoFi make payments easy to track and give you a target payoff date to work toward.

If You’re Approved for a Personal Loan

Before you sign on the dotted line, it’s smart to take the following steps:

Read the Fine Print

If you’ve had a bankruptcy on your record, the terms of your offer may be less than favorable, so consider whether you feel like you’re getting a reasonable deal.

People with credit scores considered poor might see APRs on personal loans running into the triple-digits. Make sure you are clear on your interest rate and fees, and compare offers from different lenders to make the choice that works for you.

Avoid Taking Out More Than You Need

You’re paying interest on the money you borrow, so it’s generally better to only borrow funds that you actually need. Further, it’s probably wise to only take out as much as you can afford to repay on time, because paying on time is an important key to rebuilding your credit. Having a focused plan for what you’ll spend the personal loan funds on may give you some incentive to manage it responsibly.

If You’re Not Approved for a Personal Loan

If you are denied a personal loan, don’t despair. You may have options for moving forward:

Appealing to the Lender

You can try to explain the factors that led you to file for bankruptcy and how you have turned things around, whether that’s a record of on-time payments or improved savings. The lending institution may not change its mind, but there’s always a possibility the lender can adjust its decision case by case.

You likely have the best chance at an institution that you’ve worked with for years or one that is less bound to one-size-fits-all formulas — a local credit union, community bank, online lender, or peer-to-peer lender.

Looking Into Applying With a Co-signer

A co-signer who has a strong credit and income history may be able to help you qualify for a loan. But both parties should keep in mind that the co-signer is typically responsible for paying back the loan if the primary borrower can’t do so.

Building Your Credit

You may need to take some time to try to build your credit profile before reapplying for an unsecured personal loan. You still have a chance to work toward reducing your other debt. There are many types of personal loans available, and a little waiting time to consider what’s right for you isn’t a bad thing.

There are several important habits to adopt when building your credit, but the most important one is your payment history, meaning whether you pay bills on time. This contributes 35% to your credit score, so it’s wise to be diligent about it as you move past bankruptcy. Setting up autopay can be a good move as it ensures you won’t accidentally pay a bill late or miss it.

Alternatives to Personal Loans After Bankruptcy

If you don’t qualify for a personal loan after bankruptcy or feel that’s not the best option, here are other ways to access credit and/or build your credit score:

• Secured credit cards, which involve putting down a deposit that usually serves as your credit limit.

• Secured loans, in which collateral (such as a savings account or a vehicle) is needed and can lessen the lender’s risk.

• A loan from a trusted friend or family member.

The Takeaway

Getting approved for an unsecured personal loan after bankruptcy isn’t impossible, but it may take some time to qualify and your rates and fees will likely be less favorable. It’s a good idea to compare offers from several lenders and gauge whether it’s the right time to borrow.

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

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

Can I get a loan with a discharged bankruptcy?

Yes, it is possible to get a loan after bankruptcy, but it may take time and the rates and terms may be less than favorable.

Are personal loans covered under Chapter 7?

Yes, personal loans can be discharged under Chapter 7 bankruptcy.

Are personal loans covered under Chapter 13?

As with Chapter 7, personal loans can be discharged under Chapter 13 bankruptcy, typically after the court-approved repayment period of three to five years. Secured personal loans will take priority over unsecured personal loans, however.

How long after bankruptcy discharge can I get a loan?

There is no set time a person must wait in order to apply for a loan after bankruptcy discharge. Each lender will have its own conditions for approval. However, a typical period might involve waiting one to two years.

What are the best ways to rebuild credit after bankruptcy?

To build credit after bankruptcy, it’s wise to be especially diligent about paying bills on time, every time, since that’s the single biggest contributing factor to your score. You also want to be cautious about your credit utilization rate when you are able to access credit again, and not apply for too many forms of credit at one time.

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*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

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

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Despite progress, women, especially mothers, are still fighting hard to achieve equality in the workforce. According to a 2024 Bankrate analysis of Census Bureau data, mothers earn (on average) 31% less than fathers. Based on Bankrate’s calculations, this wage loss can add up to roughly half a million dollars over a woman’s 30-year career.

The financial and career impacts of motherhood are even more pronounced for women who choose not to come back to work after having a baby — or return only to later drop out. In Motherly’s 2024 State of Motherhood report (which surveyed nearly 6,000 mothers), a full 66% of moms said they were considering leaving the workforce due to the stress and cost of childcare.

Though women’s employment has recovered from the great “she-cession” of the pandemic, the gender gap in labor force participation remains significant, with 73.7 percent of mothers in the labor force compared to 94.9 percent of fathers, according to the Institute for Women’s Policy Research.

One way employers can help women gain ground — and help solve hiring and retention issues — is to tailor benefits to better fit their needs, priorities, and concerns. Companies that offer benefits packages that help address the gender gaps in financial wellness not only help women stay and advance in the workplace, but also promote a more equitable and productive workforce.

What Employers Can Do

HR pros have been working on evening gender disparity for decades, and much progress has been made. But the pandemic shed new light on the stubborn underlying inequities that continue to burden employers and female employees alike.

Employers may find that making adjustments and additions to their benefits packages can help promote more gender equity at work while also allowing them to attract and retain top female talent. Here are some strategies you may want to consider.

Recommended: Measuring the Financial Well-Being of Your Workforce

Rethink Maternity Leave

The more paid parental leave your firm can offer, generally the better. Some companies are expanding leave for birthing parents beyond 12 weeks, offering as much as 26 weeks. Others are providing additional weeks of paid leave to parents of newborns who spend time in the neonatal intensive care unit.

A generous paid parental leave program not only helps attract female workers but also increases the likelihood that your existing women employees will return to their jobs after having or adopting a child, as opposed to dropping out of the workforce —- and leaving you with a new opening to fill.

Another question to consider is whether your parental leave policies apply to all types of families and parents, such as non-birth mothers, foster parents, and parents who use surrogates. Parental benefits provide an opportunity for building your inclusive benefits strategy.

Create Real Opportunities for Advancement

For every 100 entry-level men promoted to management, only 81 women are promoted, according to McKinsey & Company’s Women in the Workforce 2024 report. With limited room for advancement and often undervalued work, many women are leaving their employers for better opportunities elsewhere.

One way to counter this trend is to offer female employees a path to advancement through education and up-skilling/re-skilling opportunities. You might do this by offering tuition assistance programs and/or access to free (or discounted) training and certification programs. This can help female employees get ahead in their careers, earn more and, in turn, achieve greater financial stability. It can also propel women into the roles of the future where they are currently underrepresented, like data science, software development, and engineering.

Other initiatives that can improve female career mobility include: formal mentorships, sponsorships, women’s employee resource groups (ERGs), leadership circles, and career coaching workshops. If your company offers these programs, you’ll want to make sure women employees know about and have easy access to them.

Address the Childcare Crisis

The pandemic brought childcare issues to the forefront as a significant workplace challenge. However, the high costs and limited availability of childcare existed before the pandemic and continue to create an impediment for women to fully participate in the workforce.

Employers can help address childcare challenges in several ways. On-site childcare is the most accommodating benefit. But on-site care is a big investment of infrastructure and resources that realistically only a small group of major employers can provide.

One alternative is to offer some type of emergency or backup child care support. Some companies do this by partnering with local daycare facilities and providing access to free or discounted childcare when a regular provider falls through. Other firms are offering employees stipends for online services, such as Care.com and SeekingSitters.com, that provide access to sitters at short notice.

Being open to and evaluating childcare support can be particularly important if you are mandating, or simply encouraging, employees to work onsite.

Consider Returnships

Many employers are dealing with labor shortages. At the same time, there is a large pool of untapped talent among women who have fully or partially left the workforce. Many of those women want to return to work but find the gaps in their resumes and lack of current skills are holding them back.

To address both problems at once, some companies are offering “returnships.” Pioneered by finance leaders Goldman Sachs and Morgan Stanley, these are internship programs that give returning caregivers the opportunity to brush up their skills or learn new ones. Returnships typically run for a few months, offering training, experience, and networking opportunities to workers — often mothers — who’ve been out of the workforce for an extended period of time.

Returnship programs not only give women who dropped out of the workforce a viable onramp, they also give employers a way to vet talent before making an official hire.

Address Student Debt

Student loan debt impacts nearly 43 million Americans and a disproportionate number are female. According to EducationData.org, women hold 64% of all outstanding student debt and, despite making higher payments than men, take an average of two years longer to pay off their student loans. Women also owe more in graduate student loan debt than men, except in professional doctorate degrees.

Student debt can have a negative impact on any employee’s financial (and overall) well-being. And right now, borrowers are feeling particularly uneasy, thanks to unknowns surrounding potential changes to federal student loan repayment plans and forgiveness programs. What is certain, though, is that student loan repayment benefits continue to grow in popularity and effectiveness. And, they may be particularly beneficial to female employees.

HR leaders will also want to keep in mind that employers can offer up to $5,250 in tax-exempt student loan repayment benefits through 2025, thanks to the CARES Act of 2020. What’s more, the recent passage of the SECURE Act 2.0 allows companies to provide employees with a match on their retirement plans for making student loan payments starting in 2024. This can be a stand-alone offering, or part of a broader employee benefits program.

Offer Flexible, Women-Friendly Financial Wellness Benefits

In Bank of America’s 2024 Workplace Benefits Report, more than half (53%) of men reported good financial wellness, compared to just 36% of women. The study also found that women aren’t feeling as secure as men about the future: 58% of women said they were confident they will be able to build sufficient retirement savings, compared to 70% of men.

High levels of student debt, trouble making ends meet, and worries about saving enough (particularly with gaps in employment) all add a disproportionate amount of stress on women. Financial stress can impact every aspect of women’s lives, including productivity and happiness at work.

HR pros can make a huge impact on women employees by offering personalized, adaptive wellness benefits, such as debt management, emergency savings, tuition savings, retirement planning programs, and financial education. These benefits can help female employees plan and save for the future, feel less stressed about their finances, increase their focus and productivity on the job, and, importantly, change their financial lives for the better.

Recommended: The Future of Financial Well-Being in the Workplace

The Takeaway

Women are a vital part of any employer’s workforce. Benefits packages designed to address women’s specific needs can help employers attract and retain talented female employees. They can also help guarantee women, especially moms, have access to an equal playing field and a secure financial future.

SoFi at Work offers employers the benefits platform, education resources, and financial counseling that can help you assemble packages that help you increase employee productivity, loyalty, and overall well-being.

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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.

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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Starting college comes with a lot of choices —- from what classes to take to how you’ll make new friends. One of the biggest decisions you might face is whether or not to join Greek life. Fraternities and sororities have a big presence on many campuses and you’ll probably hear plenty of opinions about them, both good and bad.

So how do you know if “going Greek” is right for you? Like most big decisions, it comes with pros and cons. Greek life can give you instant friendships, leadership opportunities, and even career connections, but it can also be expensive, time consuming, and involve negative aspects like hazing or excessive partying.

Before you rush or pledge, it’s worth weighing the pluses and minuses to see whether joining a fraternity or sorority fits into the kind of college experience you want to create.

What Is Greek Life in College?

Greek life refers to communities of students who often live together, volunteer, network, and build close friendships. These communities consist of sororities for women and fraternities for men.

While each chapter is unique, the main goal of sororities and fraternities is to foster connections, encourage leadership, and give back to the community.

Students who are interested in becoming members must apply and then go through an initiation process. Once accepted, they may live with their sorority or fraternity, usually in a house on campus, and participate in activities like sports, dances, parties, and community service opportunities.

Sorority and fraternity names consist of two or three Greek letters, like Phi Kappa Theta, Sigma Pi, or Delta Zeta. This is a nod to the first U.S. Greek letter society, Phi Beta Kappa, founded in 1776 at the College of William and Mary as a literary, debating, and social club.

Many students only know about sororities and fraternities from pop culture references like “Revenge of the Nerds,” “Animal House,” “Legally Blonde,” and “Old School,” which depict a perennial party. While there is some truth to that stereotype — and fraternities have come under fire for their alcohol use and hazing rituals — Greek life can be much more meaningful and beneficial than these portrayals.

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

Upsides of Greek Life

Joining a fraternity or sorority comes with a number of advantages. Here’s a look at some of the perks.

Friends

Starting college can be intimidating, especially if you don’t know many people. Greek life gives you instant community. You’ll be able to bond with members through events, activities, and shared living, and likely build friendships that last long after graduation.

Networking Opportunities

Your chapter isn’t just a social circle, it can also help you develop a professional network. When you’re searching for internships or jobs, these connections can prove to be highly valuable. Plus, if you list your sorority or fraternity on your resume and a recruiter is a Greek life alumnus, that could open up a conversation and help you stand out.

Recommended: Penn State Out-of-State Tuition

Possibly Cheaper Housing

Living in college dorms can be pricey. If you are sharing a house with many members of a sorority or fraternity, you could potentially save money.

You may also save money by having access to a full kitchen, where you can make meals instead of purchasing a meal plan or eating at restaurants all the time.

Development of Leadership Skills

Sororities and fraternities need leaders who will come up with ideas for activities, pilot volunteering efforts, and recruit members.

If you step up and get involved, you’ll have the chance to take on new responsibilities and develop crucial skills that will be valuable when you graduate from college and start to look for jobs.

Volunteering Opportunities

Fraternities and sororities are often focused on philanthropy. From fundraisers to volunteer events, you’ll have plenty of chances to contribute to causes you care about — and that commitment can look great on a resume.

Potential Downsides of Greek Life

Of course, Greek life isn’t all parties and friendships. Here are downsides to weigh:

Cost

You typically need to pay membership dues each year you are a member of a fraternity or sorority, which can range from several hundred to several thousand dollars a semester. Chapter or national fees may also apply. In addition, you may have to chip in for party supplies, buy tickets to formals, and purchase/rent clothing for special events.

Recommended: Ohio State University Cost

Reputation

Greek life’s reputation can be a double-edged sword. While some chapters focus on academics and service, others are known for heavy partying. Hazing and alcohol-related incidents have even led to tragedies on some campuses.

If you do join, it’s important to choose a chapter that aligns with your values and to prioritize your safety and academics.

Time Commitment

Because Greek life involves so many events, and members are expected to participate, joining a sorority or fraternity generally requires a large time commitment.

Spending too much time on Greek life activities and not enough on studying or working at internships could have a negative impact on your future.

Determining Whether or Not to Join Greek Life

Joining a fraternity or a sorority can be a great way to make friends, build leadership skills, and give back to the community. But it’s not for everyone.

If you thrive in a busy, social environment and are willing to commit your time (and money), you may find Greek life incredibly rewarding. On the other hand, if the costs feel overwhelming, or if you’re worried about distractions, you might prefer to find community in other ways — through clubs, sports, or student organizations.

And if finances are a major concern, remember there are a number of ways to pay for college, including grants, scholarships, subsidized and unsubsidized federal student loans, and private student loans.

💡 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

A sorority or fraternity can provide camaraderie and enduring connections, and enhance a call for service and leadership. It can also be time consuming, expensive, and potentially distract you from your studies.

Ultimately, whether you join comes down to your priorities. For some students, it’s one of the best choices they make in college. For others, it’s not the right fit. The key is figuring out where you want your college experience to take you.

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.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

What are the pros and cons of Greek life?

Greek life offers community, networking, leadership opportunities, and a strong sense of belonging. Members often benefit from social events, academic support, and lifelong friendships. However, it also comes with downsides such as time commitments, financial costs, and the risk of negative stereotypes surrounding fraternities and sororities. In some cases, hazing and party culture can overshadow the positive aspects. Overall, it’s a highly personal decision.

What are the disadvantages of being a member of a fraternity?

Joining a fraternity can provide a powerful support system through friendships, mentoring, and networking. Many fraternities emphasize leadership, philanthropy, and academic achievement, helping members grow both personally and professionally. The social opportunities can create lasting bonds, while alumni networks often open doors to internships and careers. For students seeking connection and growth, fraternities can offer benefits that can extend well beyond college.

Does Greek life look good on a resume?

Yes, Greek life can be a strong addition to a resume if highlighted correctly. Employers often value the leadership, teamwork, event planning, and organizational skills students develop through fraternity or sorority involvement. Holding officer roles or participating in philanthropy demonstrates responsibility and initiative. However, it’s best to focus on measurable achievements rather than just membership.

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

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

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

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

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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One main reason for refinancing student loans with a private lender is to combine your loans into one new loan with a lower interest rate. If you get a lower interest rate, your monthly student loan payment will go down. You’ll also pay less interest over the life of the loan.

Here, learn more about steps to take to help get a lower interest rate on student loans.

Reduce Your Interest on Student Loans

Consolidating multiple student loan balances into one new refinance loan with a low interest rate can be ideal for those looking to reduce the amount they owe in interest and also lower their monthly loan payment. It’s important to note, though, that if you refinance federal student loans, you lose access to federal benefits such as income-driven repayment plans.

Getting approved for student loan refinancing isn’t just a matter of submitting an application. You need a game plan — one that will help you become a strong loan candidate, who’ll qualify for a lower student loan interest rate. Here are five strategies that may help.

5-Point Plan for Getting a Low Interest Rate

1. Check your credit.

If you want to reduce your student loan interest rate through refinancing, the first thing you should do is check your credit score. The stronger your credit profile, the less risky you appear to lenders. If your credit profile is solid — meaning you have a good credit score and a low debt-to-income ratio — lenders should offer you better rates.

If, however, your credit profile isn’t quite where you want it to be, that’s OK. Take a few months to build your credit and reapply for student loan refinancing down the line to see if you qualify for a better rate.

Recommended: Why Your Debt to Income Ratio Matters

2. Take a hard look at your cost of living.

Some cities are more expensive to live in than others. Someone renting an apartment in a small Midwestern town, for example, has lower living expenses than someone who owns a row home in San Francisco. Cost of living ties directly into your debt-to-income ratio, and therefore it matters when you want to get a lower interest rate on student loans.

To some extent, this is out of your hands; your zip code helps lenders determine your cost of living. But anything you can do to pay down debt, especially high-interest credit card debt, and make choices that free up more money — such as renting a smaller place, taking on a roommate, or leasing a cheaper car — can help your case.

3. Give lenders a complete history.

Some student loan refinancing lenders consider things like where you went to school and your position at work when they weigh your application. Provide as much information as you can when it comes to your undergraduate and graduate degrees.

Be sure to also include all relevant work experience. Again, if you can show lenders that you have a solid work history and your income has steadily increased, you will appear less risky. The less riskier you are to lenders, the better your student loan interest rate is likely to be.

If there’s a job offer on the horizon, be sure to submit your offer letter with your application. And if you get a promotion while your application is under review, notify the lender immediately. Finally, if you’re in line for a promotion that will positively affect your paycheck, wait until it happens before you apply.

4. Show all your income.

When lenders ask for income information, they mean all of your income, not just job earnings. List dividends, interest earned, bonuses, and the extra money you make from your side hustle or Airbnb rental property. As long as you can prove these income sources, it will all count toward your debt-to-income ratio and help to lower it. And again, the lower this ratio, the better chances you have at qualifying for a lower student loan refinance rate.

Also, make sure your driver’s license is current and that your student loan statements are all correct. If you’re self-employed, you may want to wait until you’ve filed your taxes to apply for refinancing — it’s one of the easiest ways to prove the previous year’s income.

5. Be flexible.

If you have a number of student loans and you’re not offered the best rate when you apply for refinancing, consider refinancing only a couple of them. You may get a lower interest rate with a smaller refinance balance. You can always apply for the full balance down the road after you’ve received a raise or moved to a less expensive location.

Being flexible also means you might want to think about asking a friend or relative for help if your application isn’t as strong as you’d like. When you refinance your student loans with a cosigner who has a good credit profile and low debt-to-income ratio, you may be able to get a lower rate than if you refinanced on your own.

Refinance Student Loans With SoFi

The stronger you are as a student loan refinancing candidate, the better your chances are of getting a lower student loan refinance rate. To get the lowest rate when refinancing, check your credit, take a close look at your living expenses and debt-to-income ratio, give lenders a complete history of your education and employment, make sure to include all of your income sources in the application, and finally, be flexible, even if that means applying with a cosigner.

Keep in mind, though, that if you choose to refinance your federal student loans with a private lender, you lose access to federal benefits, such as student loan forgiveness and income-driven repayment plans. Make sure you don’t plan on using these benefits now or at any point in the future before deciding to refinance.

If you do think a student loan refinance may be right for you, consider SoFi. SoFi offers competitive rates and does not charge origination fees. It takes just a few minutes to see your rates, and your credit score will not be affected when you prequalify.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Can you negotiate your student loan interest rate?

Not necessarily. Interest rates are determined by both the market and your credit profile, leaving little room for negotiation. You could, however, present your lowest offer to another lender to see if they will match that.

How can I get a lower interest rate when refinancing my student loans?

Strategies to potentially get a lower interest rate when refinancing student loans include building your credit profile, having a reliable source of income, and making sure your debt-to-income ratio is low.

Is it possible to get lower rates when refinancing student loans?

Yes, it is possible to get a lower interest rate when refinancing student loans. Your student loan interest rate will generally depend on current market rates, your credit profile, and your debt-to-income ratio. A strong credit history and a lower debt-to-income ratio may help you get a lower rate.

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SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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.

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.

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

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

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

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