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Supplemental life insurance is typically an additional policy that you can purchase to augment the group life insurance policy obtained via your employer.

These policies can provide extra peace of mind when it comes to protecting your loved ones, but is more insurance always better? You may wonder whether purchasing this kind of policy is a good idea or not worth the added expense. Let’s take a closer look to see whether supplemental life insurance makes sense for your situation.

Understanding Supplemental Life Insurance

Supplemental life insurance is a policy taken out in addition to basic coverage, which might be term or permanent life insurance. You can often purchase a supplemental policy through an employer to augment what they offer as an employee benefit. However, these policies don’t have to be secured through your job. We’ll learn more about that in a minute.

Some of these policies come with a death benefit, a lump sum payment that goes to the beneficiaries you’ve named (the loved ones who will inherit the money). Others may be a different kind of policy; say, one that pays funds that are earmarked to pay for funeral expenses. Depending on the details of your life, these add-ons may be an inexpensive way to boost your protection and sense of security.


💡 Quick Tip: With life insurance, one size does not fit all. Policies can and should be tailored to fit your specific needs.

Do You Need Supplemental Life Insurance?

Deciding whether or not to buy a supplemental policy is a very personal decision. To help figure out the right answer for your situation, it may help to ask yourself and answer a few questions. Let’s consider some of those here.

Does Your Employer Provide Life Insurance?

Because supplemental insurance is meant to enhance the life insurance policies you already have, check to see if your employer offers basic life insurance as a benefit. If so, how much? Many times, employers offering this insurance will provide a multiple of the employee’s current salary. Other times, it’s significantly less — $10,000 to $25,000 worth of coverage is common. Those are figures that many people will find too low to provide the kind of protection they’d like.

If you feel you don’t have enough protection, you may want to look for ways to boost your coverage so that in a worst-case scenario, you know your loved ones will have enough money to cover their expenses. Perhaps your employer offers supplemental policies that will get you to the level of life insurance coverage that you desire. Otherwise, you can also look on the open market for primary or supplemental policies.

Have Your Compared Life Insurance Rates?

If you haven’t compared prices of life insurance rates in a while (or ever), you might want to give it a try. Just because an employer offers life insurance, including supplemental coverage, you may not want to buy it. You may discover that you can get enough life insurance through a standard policy without adding a supplemental one.

You can quickly get quotes by calling an insurance agent or, to save even more time, from a website that provides them from multiple companies. When looking at the quote that gives you the best coverage for the most affordable premiums, would you still need a supplemental policy? The answer may be no. There’s a good deal of competition in the marketplace and great deals to be found.

Recommended: How to Buy Life Insurance in 9 Steps

How Is Your Health?

First, let’s understand that your health rating is a key factor in buying life insurance on the open market. Rates tend to be lower when you are healthier and younger. Health is typically assessed by the insurer asking you questions about your medical status and possibly having you submit to a brief health exam that involves the collection of blood and urine samples.

While plenty of life insurance policies require health exams and/or medical records, many insurers also offer lab-free options that don’t require medical exams (although you’ll almost certainly need to answer health-related questions). These are often the kind employers offer employees. Typically, these policies are for people who fit into certain age groups and other categories in which they’re likely to be healthy. These lab-free policies are often available for up to $1 million.

Now that you know how this works, understand the implications of your health status. If you have an underlying health condition, are a smoker, or have other qualifying factors, you would probably pay more for life insurance if you went shopping on the open market. In these cases, buying a supplemental policy through your job could be a good way to get coverage at a relatively low cost.

Do You Need Portable Coverage?

Before you sign up for a supplemental policy, consider whether it’s portable. “Portability” is your ability to keep certain benefits if you switch your place of employment or leave the workforce entirely — in this case, your life insurance. If you’re thinking about changing jobs or have reason to believe that you may not work at your current employer for much longer, it’s important to know if your life insurance is portable.

How Much Supplemental Life Insurance Should You Buy?

A common recommendation is to carry 10 to 15 times your annual income in life insurance coverage. Your goal is to choose a policy that would replace the income you would have brought in if you weren’t around to provide for your family. So, if you multiply your salary by those numbers and then subtract what you have in your “regular” life insurance policy, that can be a starting point to determine how much supplemental insurance makes sense.

If you make $50,000 a year and multiply by 10 or 12, that’s $500,000 to $600,000 in coverage you want to purchase. (You might want to bump it up a bit to account for inflation.) So, if you have a term life insurance policy for $500,000, you might decide to get a supplemental policy for $200,000.

Now, factor in your outstanding debt. Life insurance payouts can be used to pay them off, including mortgage loans, car loans, student loans, credit cards, and so forth. So, if you have these debts, you can add their outstanding balances up and consider adding those amounts to your life insurance needs. If, for example, these debts total $300,000, you might bump up the supplement policy example above to $500,000.

Recommended: Life Insurance Definitions

Types of Supplemental Life Insurance

We’ve been focusing on one kind of supplemental insurance, a popular option that lets you increase the overall life insurance coverage you own. This kind of policy would pay a lump-sum death benefit to your beneficiaries. If you purchase this, it’s an employee benefit that can increase the amount of coverage that you own (although you may be responsible for part of all of those premiums albeit at a group rate).

But let’s consider some other possibilities that may be offered:

•   Supplemental spouse life insurance. This kind of insurance provides a death benefit if the employee’s spouse dies and may also be called supplemental family life insurance. Employees may also have the option to buy supplemental child life insurance to cover the death of a child or other dependent who qualifies.

•   Accidental death and dismemberment. This provides coverage to your beneficiaries if you are killed or lose physical function in a type of accident that’s covered in the policy. Depending on the kind of work you do or the pastimes you pursue, this may or may not suit your needs. With AD&D insurance, you could receive a benefit, say, if you were to lose your eyesight, your hearing, or limb in an accident. But it won’t provide any benefit if you die due to other medical conditions, which are more likely to occur.

•   Final expenses. These policies pay a small benefit (typically between $5,000 and $35,000) to cover end-of-life expenses, such as funeral and burial costs. Some people like to have this kind of coverage, which means your loved ones wouldn’t have to pay out of pocket for these charges.

How Much Coverage Can You Get Through Work?

It’s worthwhile to evaluate what life insurance options are available through your work. Employers may offer lower rates since they get a group insurance rate. Also, it’s also possible that your employer would pay part of your premiums. It’s typically easier to get insured through a group plan. While you may need to answer medical questions, it’s less likely that you’ll need a medical exam for group insurance.

Group plans through your employer, though, are usually not portable. This means that if you leave that employer, the coverage ends and then you’ll need to shop around again — now at an older (although not necessarily old) age and perhaps with new health conditions. Plus, these plans aren’t as customizable as you might get on your own.

How Much Does Supplemental Life Insurance Cost?

If your employer offers this benefit as part of a group policy, the cost may be minimal, especially if the workplace subsidizes the premiums.

Otherwise, it can make sense to get personalized quotes, given that age, gender, health conditions, amount of the policy, term, and more can impact the price. There are online calculators that can help you do the math and see how the numbers add up.


💡 Quick Tip: Term life insurance coverage can range from $100K to $8 million. As your life changes, you can increase or decrease your coverage.

The Takeaway

To recap: What is supplemental life insurance? It’s a policy that enhances a person’s primary life insurance policy. It helps to ensure that they have enough financial benefit to protect their loved ones if they weren’t there to provide for them.

While supplemental policies through your employer can be affordable, they may not deliver the level of coverage you need. Take a close look at your options, and take advantage of the simple online tools that can help you find the kind of policy you need at the right price.

SoFi has partnered with Ladder to offer competitive term life insurance policies that are quick to set up and easy to understand. Apply in just minutes and get an instant decision. As your circumstances change, you can update or cancel your policy with no fees and no hassles.

Explore your life insurance options with SoFi Protect.

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Coverage and pricing is subject to eligibility and underwriting criteria.
Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers- for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.
Ladder, SoFi and SoFi Agency are separate, independent entities and are not responsible for the financial condition, business, or legal obligations of the other, Social Finance, LLC (SoFi) and Social Finance Life Insurance Agency, LLC (SoFi Agency) do not issue, underwrite insurance or pay claims under Ladder Life™ policies. SoFi is compensated by Ladder for each issued term life policy.
SoFi Agency and its affiliates do not guarantee the services of any insurance company.
All services from Ladder Insurance Services, LLC are their own. Once you reach Ladder, SoFi is not involved and has no control over the products or services involved. The Ladder service is limited to documents and does not provide legal advice. Individual circumstances are unique and using documents provided is not a substitute for obtaining legal advice.

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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There are typically no withdrawal penalties associated with leaving leftover funds in a 529 plan after college. In fact, 529 plans allow you to withdraw up to $10,000 per year, per student.

But still, the earnings portion of a non-qualified 529 plan distribution can be subject to income tax and a 10% penalty for 529 withdrawal.

Keep reading to learn more about what a 529 plan withdrawal penalty is, which 529 withdrawal penalty exceptions exist, and a few other college financing options for students and parents without 529 plans.

What Is a 529 Plan?

A 529 plan is a college savings investment account that comes with unique tax benefits if it’s used to pay for qualified education expenses. It can help cover the costs of a beneficiary attending college, K-12 school, an apprenticeship program, or even to pay back student loans.

When someone uses a 529 plan to save up for college, the funds generally have little impact on their ability to receive financial aid.

In addition, there are several other benefits to using a 529 plan:

•   Funds in the account are invested and grow over time.

•   Depending on the type of 529 plan, beneficiaries can prepay for college in advance to lock in current tuition prices before they go up.

•   529 college savings accounts are listed as assets when the beneficiary applies for Federal Student Aid.

•   Certain 529 plans let beneficiaries deduct their contributions on their state income taxes.

•   529 plan contributions can be considered “completed gifts” to the beneficiary, allowing families to use them as estate planning vehicles. For 2023, the annual gift tax exclusion can be applied up to $17,000 per donor, per beneficiary and in 2022 the annual exclusion was $16,000.

What Are Qualified 529 Plan Distributions?

Let’s start with the education expenses that are considered qualified within a 529 plan:

•   Tuition and associated fees

•   Room and board (if the student is enrolled at least half-time)

•   Books

•   Technological equipment and computers

•   Equipment for special needs

•   Student loan payments

•   Up to $10,000 per year, per beneficiary in eligible K-12 expenses

•   Apprenticeship program tuition and fees

•   Up to $10,000 in K-12 tuition expenses (per year, per beneficiary)

Recommended: Using Student Loans for Living Expenses and Housing

What Are Non-Qualified 529 Plan Distributions?

Non-qualified 529 plan distributions describe any portion of a plan withdrawal in which the funds were not used to pay for qualified education expenses like the ones listed above.

As such, here are some of the education expenses that are considered non-qualified:

•   Costs associated with transportation

•   Costs associated with college application and testing

•   Costs associated with extracurricular activities

•   Health insurance costs

•   Any cost that doesn’t fall under the umbrella of the qualified education expenses listed above

Are Distributions Taxable?

Generally, contributions can be withdrawn tax-free because taxes are paid at the time of contribution. The earnings portion (the money earned from investments) of a non-qualified 529 program plan distribution could be subject to a 10% federal income tax penalty on top of any associated income taxes that may be due. It would be taxable to whomever received the payment, whether that’s the account owner or the designated beneficiary.

If the non-qualified distribution is not paid out to either the designated beneficiary or the eligible educational institution, it’s assumed to have been given to the account owner who will be subject to the 10% withdrawal penalty and tax.

What Is a 529 Early Withdrawal Penalty?

A 529 early withdrawal penalty occurs when investment gains are withdrawn from a 529 account before the beneficiary incurs any qualifying expenses, or if they withdraw funds for any of the non-qualified reasons listed above.

When this happens, the IRS can assess a steep early withdrawal penalty of 10%.

In California, an extra 2.5% state income tax penalty is imposed on the earnings portion of non-qualified 529 plan distributions.

Can I Make a Withdrawal From 529 Without Penalty?

In certain cases, it’s possible to execute a withdrawal from 529 without penalty, such as if:

•   A plan beneficiary passes away, becomes disabled or decides to attend a U.S. Military Academy.

•   A family must pay income tax on a portion of their 529 withdrawal due to their claiming the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC).

•   A plan beneficiary receives certain other types of educational assistance, such as a scholarship exception.

529 Withdrawal Penalty Exceptions

Here are a couple of circumstances in which a 529 withdrawal penalty may not apply to a non-qualified distribution.

Scholarship

It may come as a surprise to learn that the 10% 529 early withdrawal penalty doesn’t apply when a beneficiary no longer needs to use their 529 funds because they received a scholarship.

This particular 529 withdrawal penalty exception allows funds to be withdrawn from the 529 plan without penalty up to the amount of the scholarship itself.

While this is one way to avoid a penalty for 529 withdrawal, account owners will still owe taxes on the earnings after the initiation of the withdrawal if they are used on non-qualified expenses.

Death or Disability of Account Beneficiary

If the 529 account beneficiary passes away, the withdrawal fees are generally waived.

The additional fee is also generally waived in the event that the designated beneficiary becomes disabled. According to the IRS, someone is considered disabled if they are able to prove that they are unable to participate in any significant gainful activity due to a physical or mental condition.

Recommended: Student Loan Disability Discharge Eligibility

Beneficiary Enrolls in a US Service Academy

If the designated beneficiary enrolls in a U.S. service academy, such as the United States Naval Academy at Annapolis, the withdrawal fee may be waived. Note that the exception to the withdrawal fee only applies so long as the distribution amount does not exceed the cost of attendance as defined by the IRS.

Time Limit

There’s a decent amount of debate around the timing of a 529 plan distribution when it’s based on a scholarship. There are no clear instructions from Congress or the IRS, which means tax professionals and other financial experts may vary in their guidance. If you have specific questions, consider consulting with a tax professional who can provide a personalized recommendation.

What if My Child Doesn’t Go to College?

If you’re a parent who’s saving for your child’s college tuition and they don’t decide to go to college, there are certain specifications and limitations around what else the 529 funds can be used for.

For example, in some states, 529 funds can be used to cover K-12 expenses or professional schools.

That said, if the beneficiary decides to take a gap year to travel or join the armed forces, the funds can’t be withdrawn for personal use by the parents for something like a major renovation.

Still, there are a few ways to take advantage of 529 savings when the intended dependent doesn’t want to attend a college or university:

Changing the Beneficiary

In instances where the account owner has more than one dependent, they may be able to change the beneficiary of the existing 529 plan from one child to another. All they need to do is fill out the associated paperwork, which can typically be found on the 529 plan provider’s website, or give them a call and have them send it in the mail.

Apprenticeships

In 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act expanded the scope of qualified educational expenses for 529 plans to include student loan repayment and registered apprenticeships.

If an apprenticeship is registered and certified with the U.S. Secretary of Labor , it is considered a qualified higher education expense and, as such, associated program fees, supplies, books, and equipment may be considered qualified higher education expenses as well.

Recommended: What Is an Apprenticeship? Do They Pay? Pros & Cons

Repay Student Loans

As briefly mentioned above, student loan repayment is now included as a qualified education expense for 529 plans. Under the SECURE Act, it is possible to use a lifetime maximum of $10,000 from a 529 plan to pay down student loan debt. This money can be used to repay student loan debt that belongs to the 529 plan account holder, their spouse, children, or grandchildren.

Other College Financing Options

If you or a dependent missed the boat on setting aside funds in a 529 college savings plan, there are still plenty of options to secure financial support.

If you’re looking for another way to pay for your child’s college education, you might consider:

•   Federal student loans. There are many types of federal student loans funded by the federal government and, in order to qualify, you must fill out the Free Application for Federal Student Aid (FAFSA®) form every year you want to receive federal student loans. Federal loans offer an array of flexible payment options, the ability to earn student loan forgiveness, and the option to defer payments or put the loan into forbearance.

•   Parent Plus loans. A Parent Plus Loan is a federally funded student loan that can be taken out by parents to help their undergraduate dependents pay for college. There are no annual or lifetime borrowing limits and, with the Parent Plus Loan Forgiveness Program, borrowers are eligible for an income-contingent repayment plan or relief from the Public Service Loan Forgiveness program. There is no federal program that allows for parents to transfer a parent plus loan to the student.

•   Private student loans. A private loan for students can help cover the cost of a college education based on the borrower’s credit score and can be obtained from a variety of private lenders.

When you opt for a private student loan with SoFi, you can check your rate instantly, apply in minutes, and there are no hidden fees. While private student loans can help fill funding gaps for students who are paying for college, they don’t always offer the same borrower benefits or protections as federal student loans, such as the option to pursue Public Service Loan Forgiveness or deferment options. For this reason, they are generally borrowed only after all sources of financing have been thoroughly reviewed.

Recommended: A Guide to Unclaimed Scholarships and Grants

The Takeaway

A 529 plan is a college savings investment account that comes with unique tax benefits if it’s used to pay for qualified education expenses. Qualified expenses include tuition, fees, school supplies, and room and board. Non-qualified expenses include health insurance, extra-curricular activities, and fees for applications and testing — to name a few.

When someone withdraws funds from their 529 plan for non-qualified expenses, they are subject to a 10% early withdrawal penalty. In some cases, though, there are 529 withdrawal penalty exceptions, including when a plan beneficiary passes away, claims a specific tax credit, or receives a scholarship.

In cases where a dependent decides not to go to college, 529 plan account owners have the option to change the plan beneficiary to another dependent, use the funds for a dependent’s apprenticeship, or cover K-12 expenses.

Other college financing options include federal student loans, Parent Plus Loans, and private 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.

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

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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.

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If you’re considering pursuing a career as a veterinarian, you probably have tremendous affection and compassion for animals and want to help them via medical training. That probably means you’re considering attending veterinary school. Among the questions you may be wondering about are, How long is vet school? How do I apply? How much will vet school cost, and how can I afford it?

This guide will help you understand the process for how to become a vet and how you might afford this fulfilling career.

How Much Does It Cost to Become a Veterinarian?

The cost for a four-year veterinary school for in-state residents is over $200,000 while students with out-of-state tuition may pay more than $275,000, depending on the school, according to the VIN Foundation Student Debt Center.

While that’s a lot of money, getting a doctorate in veterinary medicine (DVM) can lead to a median salary of $103,260 a year according to the Bureau of Labor Statistics. A vet’s salary depends on what kind of practice they go into and where they are located.

How Long Does It Take to Become a Veterinarian?

The path to becoming a vet can vary, and the length of time it takes to become a vet can vary as well. In general, most vet schools are four-year programs for a DVM. Some, however, have accelerated programs and semesters and get the work done in three years.

Those pursuing a veterinary career path might also want to factor in how long it takes to complete the prerequisites. In general, that will require students to have a bachelor’s degree, which also takes around four years to complete. If you have already completed your bachelor’s degree but didn’t take the courses required for vet school, then you may need to pick up those credits as well before you start your applications.

That said, what follows are six key steps if you are wondering how to be a veterinarian.


💡 Quick Tip: Some student loan refinance lenders offer no fees, saving borrowers money.

6 Steps to Become a Veterinarian

The steps to becoming a veterinarian are often as follows:

Step 1: Check Off The Prerequisites

These points can help you move towards your degree as a veterinarian:

•   The Veterinary Medical College Application Service resource will show you the list of prerequisite college courses that are generally required for students applying for veterinary school. Required courses for most veterinary schools include biology, chemistry, animal sciences, and advanced math.

•   Students interested in pursuing vet school who are currently enrolled in undergrad may want to review their current course of study to be sure they are on track for vet school prerequisites.

•   Another tip is to volunteer, get an internship, or do part-time work with an animal hospital, local business, or charitable organization that helps animals. See if your college has a prevet extracurricular club that could broaden your experience and help you learn more about the field.

Getting a lot of hands-on animal experience can help build your resume and help you make sure that you’re pursuing a career path that appeals to you.

Also, know that to file your vet school application, you’ll most likely be required to submit your undergraduate transcripts and provide a reference from a college professor or professional in the animal sciences.

Step 2: Determine How to Pay for School

Before you decide on which veterinary school you want to attend, consider evaluating what savings you have to put toward vet school and estimate what you may need to borrow in student loans or fund with grants and scholarships.

It’s important to think about veterinary school costs as you begin researching schools so you have a good idea of what your veterinary school debts may look like.

According to the most recent data from the American Veterinary Medical Association, the average educational debt among the 82% of US veterinary college graduates who take on debt was $179,505. While vets do earn a good salary once they find employment, that is a significant sum to consider.

Working a part-time job while attending school might help offset some of the vet school costs or the amount you have to take out in loans in order to cover living expenses, but it might be challenging to balance work and school, especially as your schoolwork increases.

Recommended: Why Your Student Loan Balance Never Seems to Decrease

Step 3: Research Veterinary Schools

Once you have an idea of how much money you have to pay for vet school, research the veterinary schools in the country. You’ll likely consider the location, costs, and the types of programs offered if you’re pursuing a specialty veterinary degree.

This step can be an important part of the journey on how to become a veterinarian. As you read above, it may be more affordable to attend a vet school in your state.

Also, check that the vet school(s) you are applying to are suited to the type of vet medicine you want to practice. For example, if you’d like to pursue a career working with horses, research schools that offer equine programs.

If you plan to pursue a general DVM degree, find an accredited veterinary program that fits the criteria most important to you, such as your budget or where you want to live.

Step 4: Apply to Veterinary Schools

Check out the schools’ admissions website to determine the specific graduate school application requirements. Some pointers:

•   Most vet schools require students to submit scores for either the Graduate Record Examination (GRE) or the Medical College Admission Test (MCAT). Some schools may also require applicants to take the Biology GRE.

•   You also might need a letter of recommendation or two, as noted above.

•   Some applications may also require a personal essay.

•   Once your application is received, there may also be an in-person interview.

Yes, the vet school application process can be involved and long. It can get expensive, too. Vet schools often charge a non-refundable application fee; many schools follow the fee structure set by the American Association of Veterinary Medical Colleges, which sets the first application fee at $227, and then each additional application fee is $124.


💡 Quick Tip: Federal parent PLUS loans might be a good candidate for refinancing to a lower rate.

Step 5: Attend Veterinary School

A three- to four-year vet med school degree often involves a few semesters of coursework, followed by clinical training and intense clinical training to gain hands-on training at one of the college’s affiliates.

Students can apply for scholarships and grants to help alleviate some of the costs of a veterinary degree. By managing your budget and minimizing extraneous expenses, you may also lower the amount of student debt you end up borrowing.

In order to practice veterinary medicine and become a veterinary, students will also need to study for and pass the North American Veterinary Licensing Examination (NAVLE). Generally, vet students take the exam during their senior year.

Step 6: Begin The Job Search

The experiences you had during clinical rotations can help you determine which area of veterinary medicine you want to go in. Options include private veterinary practice, vet hospital, research, education, diagnostics, or even public health with a DVM degree.

In general, it can be helpful to start looking for a job in veterinary medicine before graduating from vet school. After passing the NAVLE and graduating from school, you’ll be ready to hit the ground running if you have a job in place.

Having a job secured before you graduate may also provide peace of mind as you start thinking about student loan repayment.

The Takeaway

A career in veterinary medicine can be a rewarding one. You’re helping sick or injured animals heal, providing preventative care, and getting to interact with animals all day long. When it comes to discovering how to become a veterinarian, the process takes planning, dedication, and hard work.

Attending veterinary school can be a challenging but fulfilling journey. It’s also typically an expensive one. After graduating, refinancing student loans may be an option that can lower the loan’s interest rate, and potentially reduce the cost of borrowing in the long term. However, you may pay more interest over the life of the loan if you refinance with an extended term. Also, refinancing federal student loans means you forfeit some borrower protections, such as loan forgiveness and deferment.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

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

FAQ

Where do veterinarians work?

Veterinarians work across the country and around the world in a variety of settings, such a s private clinics, animal hospitals, and zoos, or they may operate out of an office and then visit homes or ranches.

What does a veterinarian do?

A veterinarian cares for the health of animals, whether pets, livestock, or other animals. They diagnose and work to heal issues animals endure and may protect public health by doing so.

What’s the salary and job outlook for a veterinarian?

The median salary for a veterinarian is currently $103,260 a year according to the Bureau of Labor Statistics. The need for vets is seen as increasing, with a projected growth of 19.4% between 2021 and 2031.

What hours do vets work?

The hours a vet will work can vary tremendously depending on a specific job, type of employment, and location. Most vets work four to five days a week, eight to 10 hours a day.

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

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

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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No doubt, law school is a major undertaking requiring a lot of hard work as you train for a challenging and rewarding career. And a key part of getting accepted into law school can be scoring well on the Law School Admission Test (LSAT). What’s more, a high LSAT score can potentially increase a student’s scholarship and other funding opportunities to pay for law school.

But getting an LSAT score you’re proud of can take some planning and preparation. To help with that, this guide will break down how to study for the LSAT. In addition, you’ll learn some helpful study tips, test-taking strategies, and important dates to remember.

What Is the LSAT?

The LSAT is a standardized test that many law schools require. It is considered to be a good predictor of how well a student will perform in law school.

The test contains four sections, and test takers typically have about three hours to complete it. The LSAT score range goes from 120 to 180, with the average score currently being approximately 152.

💡 Quick Tip: Get flexible terms and competitive rates when you refinance your student loan with SoFi.

What Does the LSAT Cover?

The LSAT is administered in two distinct sections. One section is a multiple choice exam that is divided into categories including logical reasoning, analytical reasoning, and reading comprehension.

There is also a writing section that is administered separately from the multiple choice portion of the LSAT. Test takers are allotted 35 minutes for each of the four sections required for the exam, and there’s a 10-minute break between sections two and three. These sections are:

•   Logical reasoning, 24 – 26 questions

•   Logic games (aka analytical reasoning), 22 – 24 questions

•   Reading comprehension, 26 – 28 questions

•   Experimental section (typically used to develop questions for future LSATs), 22 – 28 questions

•   Writing. This section is administered separately from the multiple choice portion of the exam, but test takers will still be limited to 35 minutes.

The writing section gives test takers a prompt to articulate a stance on. The written section is available to test takers eight days prior to their testing date.

It can be taken at any time during this testing window and is proctored online using secure software. Although this section is not used to calculate the score, it is still sent to law schools and used to some degree for admissions.

The experimental portion of the exam is also unscored. This section is used internally for measuring the difficulty and effectiveness of LSAT questions. However, test takers will not be aware of which section is experimental.

The LSAT can be taken in person or remotely via a proctored online portal.

Recommended: What Is the Average Student Loan Debt After College?

What Is a Good Score on the LSAT?

As mentioned above, the LSAT scoring system ranges from 120 to 180, with a current average of 152.

What qualifies as a good score will vary depending on your outlook and how competitive the law schools are that you plan on applying to. For instance, if you want to attend one of the top-tier law schools in America (that is, one of the top five programs), you will likely need at least a 170 on the LSAT.


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How Do I Prepare for the LSAT?

Preparing for the LSAT can involve time and energy. There are a variety of methods. Some people choose just one and stick with it. Others combine a couple of techniques. There’s not one best way to study for the LSAT; it’s a personal choice.

Preparing for the LSAT has become a full-fledged industry, with a slew of specialized tutors, study guides, and courses offering their services. Among the options:

•   LSAT preptests

•   LSAT prep books

•   Test prep companies and tutoring

•   Official LSAT Prep on Khan Academy

•   Study groups with other students/prospective test takers (such as prelaw students at your college).

Read on to learn more about a couple of the methods.

Taking Official LSAT Prep Tests

How to study for the LSAT? Get organized before you start planning your applications for postgrad education. One popular option to consider is signing up for the LSAT Prep® on LSAC’s LawHub.

LSAC stands for the Law School Admission Council, a nonprofit that supports access, equity, and fairness in law school admissions.

By signing up, you can get access to four full practice tests. If you want further practice, you can purchase a service known as LawHub Advantage. This provides one year of access to more than 75 full Official LSAT PrepTests® for $115.

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Tailoring a Study Plan To Your Needs and Goals

Following your first pretest, you now have a starting point to build from to reach your target score. In some cases, you may excel in one section and struggle in another.

Does reading comprehension have you stumped? As part of your LSAT preparation, brushing up on vocabulary and dedicating more time to related practice questions could be a better use of your time if you already have a knack for logic games.

If your GPA is on the lower end of the spectrum, you might want to set a goal for scoring higher than a law school’s median LSAT score to help improve your candidacy.

As noted above, you have an array of options in terms of how to prepare for the LSAT. For some prospective test-takers, paying a tutor or for a prep class can help keep them accountable. For others, the social aspect of joining a study group at their college can be the right fit. And still others may prefer online learning as they work towards law school admission.

Making a LSAT Study Schedule That Works For You

The amount of time you plan to study for the LSAT may be influenced by how much you’d like to improve your score, based on the pretest.

•   A general bare minimum baseline is around 120 hours. Those that are interested in a significant score boost or other factors may require more time.

•   Kaplan Test Prep generally recommends that students spend between 150 and 300 hours, spread out in 20 to 25 hour weekly increments, preparing and studying for the LSAT.

•   Many LSAT takers are also juggling other responsibilities, like finishing an undergraduate degree, working, and taking care of family.

•   Consider all of your responsibilities and demands on your time as you build your study schedule. The goal is to set a schedule that will help you prepare effectively and prevent burnout.

•   Bridging a narrower gap between your initial score and target score may require less study time to achieve, but individuals with higher LSAT scores may be more likely to secure scholarships to help pay for school.

•   If you’re still in undergrad, think about taking an elective course that is geared towards the LSAT, such as logic, to simultaneously help stay on track for graduation and preparing for the LSAT.

Simulating Actual LSAT Testing Conditions

While day-to-day studying can be broken down into shorter segments to work on logic games, vocabulary, and mastering concepts, it may be helpful to take several LSAT sample tests in full.

Creating realistic testing conditions is as simple as following the 35-minute time limit per section, sitting at a desk, and getting up on a Saturday morning to take it. Not only could this approach provide a more accurate LSAT score sampling, but also build endurance and time management skills in a test environment.

In between practice tests, allowing time for review and doing more practice problems can also help gauge growth and identify which section needs the most improvement.

LSAT Test-Taking Tips

As much as the LSAT is about mastering logic and thinking analytically, test takers can also benefit from an in-depth understanding of the LSAT itself. On top of finding and adopting the best ideas for how to prepare for the LSAT, these test-taking tips could be helpful.

Answering Every Question

Unlike the SAT, the LSAT does not deduct points for incorrect answers. That’s right: You’re not penalized for getting something wrong. Since leaving questions blank could potentially result in losing out on coveted points, it may be worth allotting the last 30 seconds of the section to fill in an answer bubble for remaining questions.

If you’re stumped by a difficult question, you might benefit from entering in your best guess and moving on to dedicate time and effort to questions you feel more confident answering.

Keep in mind that once a section ends, you are not permitted to go back and answer questions or correct responses.

Using Process of Elimination

Multiple-choice questions on the LSAT can contain similar answers that can trip up test takers, especially when rushing.

Given the test’s emphasis on logic and analytical thinking, employing a process of elimination strategy can help get rid of flawed answers one by one and avoid choosing a well-crafted, misleading answer.

Relax… It’s Okay to Retake the LSAT

Given the importance the LSAT plays in law school acceptance, it may come as no surprise that many people retake the test.

One benchmark study found that, at a given test administration, about 26% were second-time test takers. Another finding was that second-timers in a given year typically raise their score by two or three points. (Keep in mind that law school admission committees will likely receive all of your test scores.)

If you’re worried about your nerves getting the best of you, planning to take the LSAT well-ahead of admission deadlines could help alleviate some stress since you’ll have another chance or two to retest if needed.

There are limits to the number of times the LSAT can be taken within certain timeframes, including five times since 2018 and seven tests in a lifetime. It’s possible to cancel test scores if you are unhappy with how you did, but canceled scores will count towards the totals mentioned here.

Important LSAT Dates

When figuring out how to start studying for the LSAT, it might be helpful to map out a timeline of test dates and law school admission schedules. There are multiple options and locations for testing dates, as well as law school application deadlines to be aware of.

If you’re hoping to pursue your J.D. within a year or two, it may be easier to work backwards from when you actually need to apply to law school. Deadlines for law school applications can vary, with many regular-decision dates falling between February and March and early-decision ones in November or December.

Many experts recommend taking the LSAT in June so there’s time to retake it in the fall, if needed. Scores are generally sent three weeks after the exam on a pre-specified release date. The current schedule of 2024 test dates runs from January through June; for updates, visit LSAC’s site.

Paying for Law School

Education is an investment — both in time and money. Typically, law school spans three full-time academic years, and the rigorous schedule can make it challenging to work outside of summer internships. Here’s some important information about paying for law school:

•   While the payoff can be considerable for legal professionals, the upfront cost can be a heavy lift. When thinking about how to pay for law school, know this: Using the most recent data, the average total cost of law school is $220,335, according to the Education Data Initiative. The average in-state tuition for public universities was $9,610, while the average for private universities reached $53,034.

•   When law school scholarships and financial aid are not enough, students can take out federal or private student loans to help pay the difference for law school. Coming up with a plan to pay for law school early could help put you on track to tackling law school debt and focusing on your budding law career.

•   Students or graduates still paying for their law school (and potentially undergraduate) student loans could opt to refinance and combine payment under one loan. This may make payments simpler and/or more affordable, but it’s important to note that if you refinance for an extended term, you may pay more interest over the life of the loan. In addition, refinancing federal student loans means forfeiting federal borrower benefits and protections, so it won’t be the right choice for everyone.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

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

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

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

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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

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If you, like many students, have taken out loans, it’s important to know the answer to, “Do student loans accrue interest while you are still in school?” The answer is often yes. The main exception to this rule is for those who hold Federal Direct Unsubsidized Loans. While a student is taking classes, the interest on these loans is covered by the US government.

It can be important to understand exactly what type of student loan you have to make sure you understand the terms of the loan and when interest accrues. This, as you might guess, impacts how much you will be paying back.

Read on for a guide to how student loan interest works while you are still in school.

Understanding How Federal Student Loan Interest Works

Do federal student loans accrue interest in school? In many, but not all, cases, the answer is yes. The first step of understanding how student loan interest works is to know what type of student loan you have exactly, because interest may accrue differently, depending on the type of loan it is.

Subsidized vs. Unsubsidized Loans

Federal student loans may be subsidized or unsubsidized. The accrued interest on Direct Subsidized loans is covered by the government while a student is enrolled at least half-time. Direct Subsidized loans are only available to undergraduate students.

For Direct Unsubsidized Loans, students are responsible for paying the interest that accrues on their student loans. Interest begins accruing as soon as the loan is disbursed, or paid out to the borrower.

You won’t be required to make payments while in-school, but be aware that if you don’t, you may graduate with a higher balance than when you started. That’s because the accrued interest is capitalized on the original balance of the loan. Direct Unsubsidized Loans are available to undergraduate and graduate students.

Direct PLUS Loans are available for graduate students or their parents. The interest on these loans begins accruing when the loan is disbursed and continues accruing while the student is enrolled in school.

How Does the Grace Period Impact Interest Accrual?

Both Direct Unsubsidized and Subsidized Loans have a six-month grace period after the borrower graduates. On subsidized loans, the borrower is not responsible for paying interest during the grace period. On an unsubsidized loan, interest continues to accrue during the six-month grace period.

Direct PLUS Loans do not have a grace period. Graduate students do receive an automatic deferment after graduation and interest does accrue during this time period.

How Does Capitalized Interest Work?

While payments are not required on most federal student loans while the student is enrolled in school, students with Direct Unsubsidized or PLUS loans have the option of making interest-only payments. This can be helpful because, as mentioned previously, after the grace period, and at the end of periods of deferment or forbearance, the accrued interest is capitalized on the loan.

Capitalized interest on student loans occurs when the accrued interest is added to the principal balance of the loan (the amount that was originally borrowed). This becomes the new balance of the loan, and interest will continue to accrue based on that new balance.

Think of all that accumulating interest like a snowball rolling down a mountain. You might be able to stay ahead of it for a while, but it also might catch up with you.


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Understanding How Private Student Loan Interest Works

When thinking about private vs. federal student loans, know that private loans are not subject to the same rules as federal student loans. They’re offered by private companies, and each lender will likely have its own terms and conditions.

Wondering, “Do private student loans accrue interest while still in school?” Yes, the majority of private student loans will accrue interest while the student is enrolled in school. Some lenders may allow borrowers to defer payments until after they graduate. In this case, the accrued interest from while the borrower was in school will likely be capitalized on the loan. To be sure of the terms on your loan, review the loan agreement or check in with the lender directly.

Keep in mind that, as mentioned, private student loans don’t always offer the same benefits or borrower protections (things like income-driven repayment options) that federal loans do. Because of this, they are generally considered after all other sources of financing, including federal student loans, have been exhausted.

This table provides an overview of how interest accrues on the various types of loans discussed in this article.

Type of Loan	Does Interest Accrue While In School?	Grace Period and Interest
Federal Direct Subsidized Loans	Interest does not accrue while the borrower is enrolled in school at least half-time	Interest does not accrue during the six month grace period
Federal Direct Unsubsidized Loans	Interest accrues while the borrower is in school	Interest does accrue during the six month grace period
Federal Direct PLUS Loans	Interest accrues while the borrower is in school	Do not have a grace period
Private Student Loans	Varies by lender. It is likely that interest will accrue	Varies by lender. Some lenders may offer a grace period and interest may accrue

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Can You Minimize Student Loan Interest Accrual While in School?

One way to limit accrued interest is to limit what you borrow in the first place. When it comes to student loans, aim to borrow only what you really need.

Work-Study or a Part-Time Job

A work-study, for those eligible, or part-time job in another way to help take the sting out of student loan payments. You may have the best intentions when it comes to getting a job to help make those loan payments, but it can be tough to manage when you’re busy with academics, extracurriculars, internships, and more.

Make Interest Only Payments

Do you need to pay student loans while in school? That isn’t likely to be a requirement, but as mentioned earlier, many loans allow borrowers to make interest-only payments while they’re in school. While this won’t really eliminate accrued interest, it may help minimize the amount of interest paid over the life of the loan, because the interest is paid as it accrues instead of being capitalized onto the loan.

Recommended: Are Student Loans Tax-Deductible?

The Takeaway

Interest on many types of student loans accrues while the student is in school. Federal Direct Subsidized Loans are an exception, as the accrued interest is paid for by the government while the student is enrolled in school and during the grace period.

Generally speaking, interest other types of student loans, including Direct Unsubsidized and PLUS Loans, begin accruing interest when they are disbursed, and continue accruing interest while the student is enrolled. For private student loans, each lender will likely have its own terms and conditions. The surest way to confirm how interest accrues on a private student loan is to check directly with the lender.

Depending on your situation, student loan refinancing might lower your monthly payment. However, it’s important to note that if you refinance for an extended term, you may pay more interest over the life of the loan. Also, when you refinance federal loans, you forfeit federal loan protections. Refinancing may not be the right decision depending on your particular needs.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

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

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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.

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

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

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