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There’s no question that furthering your education can be an expensive endeavor. But depending on what you study, students in some majors can expect to pay a significantly higher price than others.

If your goal is to study law, medicine, or veterinary medicine, for example, and you plan to get a graduate degree, you could end up owing five or six times more than the average person with a bachelor’s degree.

Whether you choose your major out of passion or for the potential paycheck — or both — only time will tell if you’ll get the outcome you’re hoping for. In the meantime, it can be a good idea to look at how much you might have to borrow to finance the course of study you’re considering.

Student Loan Debt in America

How much do student loan borrowers in the United States owe after college?

According to the Federal Reserve’s most recent numbers, outstanding U.S. student loan debt reached $1.74 trillion in the second quarter of 2024. That’s nearly triple what the Fed says Americans owed in 2006.

Gen Xers have the most student loan debt out of any other generation, with an average balance of $44,290 per borrower. Baby boomers have the second-largest amount at $42,520 per borrower, and millennials average $32,800 per borrower.

And the United States isn’t the only country with a high amount of student debt. In England, the value of outstanding loans reached £236 billion (approximately $261 billion in U.S. dollars) at the end of March 2024. The government there forecasts the value of outstanding loans will be around £500 billion (approximately $553 billion in U.S. dollars) by late 2040s.

While student loan forgiveness and other reforms are often discussed here and abroad, little is happening so far.

Recommended: Average Student Loan Debt: By Career

Average Student Loan Debt

According to the Education Data Initiative, the average federal student loan debt balance is $37,853 per borrower. And if you include private loan debt, the average balance may be as high as $40,681.

Of course, the amount you might borrow (or have borrowed) could vary significantly depending on your major and the degree required to pursue your chosen profession.

The average student loan debt for a borrower with a bachelor’s degree, for example, is about $30,500. But if your major moves you on to a graduate degree, the cost can move on, as well — to an average of $65,667 for the graduate degree only ($84,203 on average in total student loan debt). And if you’re thinking about a degree in law or medicine, your debt could be in the hundreds of thousands.

Federal student loan programs also allow graduate students to borrow more money than undergraduates. Though there’s a $31,000 cap on federal loans for undergraduate students who are dependents, graduate students may be eligible to borrow up to the full cost of attendance through the federal Grad Plus program.

Other factors that affect the amount students end up borrowing can include the cost of living in the state where the school is located, whether the school is public or private, and whether the student is paying in-state or out-of-state tuition.

Recommended: How to Pay for College

Student Loan Debt by Major

When you first start thinking about how to choose your college major, it’s likely you base your top choices on the academic subjects you’ve always been good at or things you’re interested in. Maybe you have a passion for a subject you feel destined to pursue.

If you’re a practical person, you also may have considered what career that degree might potentially lead to, and how much you’d earn if it became your profession.

What you may not have thought about — at least not at first — was how much it might cost you to major in one subject vs. another. Or if you might have to get an advanced degree in your major to actually get the job, or paycheck, of your dreams.

Here’s a look at the average student loan debt for some popular degrees:

Law Degree

$160,000 upon graduating

74% graduate in debt

Medical Degree

$243,483 upon graduating

73% have educational debt

Recommended: What Is the Average Medical School Debt?

Dental School

$296,500 upon graduating

82% take out student loans

Nursing

Associate Degree in Nursing (ADN): $23,302

Bachelor of Science in Nursing (BSN): $28,917

Master of Science in Nursing (MSN): $49,047

Almost 70% take out student loans.

Recommended: A Look at the Average Cost of Nursing School 

Business Administration

$41,000 to $170,000 for MBA students

54% of MBA graduates take out loans

Architecture

$40,000 in debt

(% who borrow not available)

Veterinary Medicine

$179,505 on average

82% graduate with debt

Pharmacy

$167,711

82.2% take out student loans

Education/Teaching

$55,800

45% take out loans

Communication/Journalism

Bachelor’s degree: $31,651

Master’s degree: $27,911

(% with loans not available)

Associate Degree Debt by Major

Below is the average debt of students graduating with an associate degree based on major, per Education Data Initiative:

•   Alternative and Complementary Medicine and Medical Systems: $38,533

•   Computer Systems Analysis: $27,924

•   Behavior Sciences: $21,859

•   Construction Management: $19,423

•   Marketing: $16,628

•   Animal Sciences: $12,705

•   Education, General: $11,035

•   Engineering, General: $10,299

•   Biological and Physical Sciences: $7,591

Bachelor’s Degree Debt by Major

Below is the average debt of students graduating with a bachelor’s degree based on major, per Education Data Initiative:

•   Behavioral Sciences: $42,822

•   Computer Programming: $28,586

•   Education, General: $28,001

•   Music: $26,600

•   Architecture: $26,468

•   Construction Engineering: $26,025

•   Social Work: $24,863

•   Accounting and Related Services: $24,086

•   Economics: $20,700

•   Human Biology: $17,994

•   Science Technologies/Technicians, General: $9,529

Master’s Degree Debt by Major

Below is the average debt of students graduating with a master’s degree based on major, per Education Data Initiative:

•   Advanced/Graduate Dentistry and Oral Sciences: $158,155

•   General Sales: $104,650

•   Real Estate Development: $97,023

•   Landscape Architecture: $80,409

•   International Business: $65,052

•   Public Health: $48,726

•   Engineering Science: $45,887

•   Insurance: $43,408

•   Construction Management: $37,620

•   Engineering, General: $33,235

•   Education, General: $29,434

Doctoral Degree Debt by Major

Below is the average debt of students graduating with a doctoral degree based on major, per Education Data Initiative:

•   Pharmacy, Pharmaceutical Sciences, and Administration: $310,330

•   Psychology, Other: $187,804

•   Public Administration: $146,194

•   Health and Medical Administration Services: $101,589

•   Education, General: $82,131

•   Biology, General: $42,879

Federal vs Private Student Loan Debt

As these student loan debt statistics show, the rising cost of attending college can be a heavy financial burden for many Americans. And because there are limits on how much students can borrow in federal loans each year, many turn to private student loans to help cover their education bills.

The national private student loan balance now exceeds $128 billion, according to EducationData.org, which says 88.93% of that balance is in undergraduate loans and 11.07% is in graduate student loans.

Private student loans are a pretty small piece of the overall outstanding student loan debt in the United States — about 8.84%. But the number of students taking out private loans is growing. Student loan borrowers owe 71% more in private student loan debt than they did a decade ago, the Student Borrower Protection Center reports.

Recommended: Private Student Loans vs Federal Student Loans

The Takeaway

No matter what your major is, there’s a good chance you may have to take on some debt to get the education you need and want.

And the final bill could be substantial: The average federal loan debt balance is $37,843 per borrower, but if you choose a major that requires a graduate degree, it could be two or three times that amount, or more.

Most student borrowers use federal loans to help pay for their education. But a combination of federal and private loans may be necessary to cover all your costs.

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

How much student loan debt is there in the United States?

According to the Federal Reserve’s most recent numbers, outstanding U.S. student loan debt reached $1.74 trillion in the second quarter of 2024.

What is the average U.S. student loan debt per student?

According to Education Data, the average federal student loan debt balance is $37,843 per borrower. If you include private loan debt, the average balance may be as high as $40,681.

Who owns the most student debt?

The federal government — or, more specifically, the U.S. Department of Education — owns about 92.5% of all student loan debt in America.

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Photo credit: iStock/FabrikaCr

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

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

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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SOISL-Q324-055

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A student loan promissory note is a legally binding contract that explains the terms of the loan and your rights and responsibilities for repaying the debt. It lays out important details you’ll need to know (both during school and after you graduate), including how you can spend the proceeds of the loan, when interest starts accruing, along with your deferment and repayment options.

If you’re a student loan borrower, it’s essential to understand what’s in your promissory note. Here, we walk you through the most common types of promissory notes for students.

What Is a Student Loan Promissory Note?

Put simply, a student promissory note is your student loan contract. It details the terms and conditions of that loan, including what you owe; how interest is calculated and charged; available repayment plans; and any late fees or other charges you may have to pay. Both federal and private student loans typically require that you sign a promissory note.

If you’re close to graduation (or recently graduated) and have any questions about repaying your student loans, your student loan promissory note is the best place to look. You’ll also want to review your promissory note if you are thinking about refinancing your student loans.

What Is a Master Promissory Note?

A Master Promissory Note (MPN) is a legal document that contains the terms and conditions for federal student loans. When you sign an MPN, you are promising to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education.

Borrowers with federal student loans can typically sign just one MPN that covers multiple years of borrowing, rather than signing a new MPN each year. This means you are accepting the amount of each year’s new loans under the terms of the existing MPN.

There are two types of MPNs:

•   Direct Subsidized/Unsubsidized Loan MPN: A student borrower must complete and sign this MPN before a school can make the first disbursement of a Direct Subsidized or Direct Unsubsidized Loan.

•   Direct PLUS Loan MPN: A graduate/professional student borrower or parent borrower must complete and sign this MPN before a school can make the first disbursement of a Direct PLUS Loan.

What to Look for on a Student Loan Promissory Note

A promissory note will provide you with a wealth of information about your student loan (or loans). Here’s a closer look at what you’ll find in a promissory note.

Federal vs Private Student Loan Promissory Note

For federal student loans, you may sign a Master Promissory Note that allows you to borrow more than one loan during a period of up to 10 years. Private student loan lenders, by contrast, typically require that you sign a new promissory note for each new loan borrowed. This typically means you’ll sign a new promissory note each year you’re in school. It’s important to review this contract carefully each time, since terms and conditions may have changed.

All MPNs follow the same basic form, while promissory notes for private lenders can vary. Another key difference between federal and private student promissory notes: A promissory note for a private loan will list your interest rate, while an MPN will not. This is because an MPN may cover multiple years and federal student loan interest rates change annually.

Recommended: Private Student Loans vs Federal Student Loans

Repayment Options

Federal loans come with several options to help you manage your debt post-graduation, such as income-driven repayment plans and forgiveness programs. These options are all outlined in your MPN. You’ll want to take time to review them, especially as you enter the repayment phase of your borrowing journey.

Your private student loan promissory note will also outline your repayment options and any borrower benefits you have access to (such as reduced-payment plans or forbearance). Before signing the contract, you’ll want to review the repayment details and make sure everything you have discussed with your lender is reflected in the promissory note.

Deferment Options

Student loan deferment lets you postpone payments on your student loans for a certain period of time. You won’t have to pay your student loan bills during a deferment, but interest might accrue during this time, depending on your loan type.

Federal loans offer deferment during a number of different situations, including being enrolled in school at least half-time (and for six months after you graduate), being unemployed, economic hardship, and active military service.

Like federal student loans, private student loans are typically placed into deferment while you’re enrolled at least half-time in school, and you may also have a six-month grace period after you graduate before you need to start making payments. Interest will generally accrue on private student loans during a period of deferment. Private loans may also offer other deferment options, but every lender is different, so you’ll need to check your promissory note.

Recommended: Student Loan Payback Calculator

Interest Rate: Fixed vs Variable

Interest rates on student loans can be fixed or variable. With a fixed-rate loan, your interest rate will remain the same for the life of the loan. With a variable-rate loan, the interest rate on the loan fluctuates based on a market benchmark or index rate.

Federal student loans have fixed interest rates, which are set each year by federal law. The exact interest rate on your loan will not be listed in your MPN. To view current interest rates for federal student loans as well as previous years’ interest rates, visit the U.S. Department of Education’s website.

Private student loans may give you a choice of fixed or variable rates. Your rate and whether it’s fixed or variable will be listed in your loan’s promissory note. If the rate is variable, it may start off lower than a fixed-rate option, but could rise over time leading to higher payments.

Student Loan Fees

Your promissory note will also detail any additional costs, such as any student loan fees. For example, federal student loans and some private student loans charge an origination fee, which is a percentage of your loan amount. This fee is typically taken from the loan before it is dispersed, which means you receive less than the full loan amount you accepted. Since the origination fee is included in the principal, you will also pay interest on it (even though you did not receive those funds).

Other student loan fees you may see listed on a promissory note include: application fees, late payment fees, and collection agency fees (in the event you default on your loan and it goes to collections).

Federal student loan fees are set by law. Private student loan fees will vary by lender, so be sure to check your promissory note to understand the fee structure for your loan.

Prepayment Penalties

Prepayment penalties are fees for paying off a loan early and are designed to help lenders make money by recouping lost interest charges. Fortunately, neither federal nor private student loans have prepayment penalties. Because of this, you can typically save money on interest by paying your student loan off early.

Recommended: Student Loan Refinancing Calculator

Cosigner Requirements and Removal

Some lenders require a cosigner for student loans. This is someone, typically a parent or guardian, who has good credit and agrees to repay the loan if the student is unable to. The cosigner is equally responsible for the loan.

Federal student loans generally do not require a cosigner (or credit check). The only exception is a Direct PLUS loan, which may require an endorser (which is essentially a cosigner) if the borrower has an adverse credit history.

Private student loans, by contrast, typically do require a cosigner, since students often lack the income and credit history to qualify for a loan on their own. Your promissory note will indicate if your loan has a cosigner. It will also state whether you can eventually remove your cosigner from the loan and, if so, what the requirements for a cosigner release are (such as making a certain number of on-time payments on the loan).

How Funds Can Be Allocated

Your promissory note will stipulate what you can spend the proceeds of your student loan on. Whether you have federal or private student loans, this typically includes: tuition, fees, books/supplies, room and board, transportation, and some personal expenses. It generally does not include off-campus dining, entertainment, and non-school services.

If you have money left over after your school uses your loan to cover tuition, room and board, and fees, you’ll want to refer to your promissory note to see what else you can spend the money on.

When Is the Promissory Note Signed?

In general, borrowers will need to sign the promissory note for their loans before receiving any funds. Students who are borrowing federal student loans are able to sign their master promissory note online by logging into their federal student loan account. Typically, you’ll need to sign only one MPN for multiple subsidized and unsubsidized loans, and it will be good for up to 10 years of continuous education.

A private student loan lender may allow you to sign a promissory note online, or you may need to print it out, sign, and send it via regular mail.

What if a Promissory Note Is Not Signed?

For federal loans, a signed promissory note is required before the loan is disbursed. So, failing to sign the promissory note could mean you won’t receive your funds, or at least won’t receive them until the promissory note is signed.

A signed promissory note is also generally required for disbursement of a private student loan, though each lender may have their own requirements.

Do You Need a New Promissory Note Every Year?

Private lenders typically require students to sign promissory notes for each loan taken out, which means you may sign a new promissory note every year. Generally, federal student loan borrowers can sign a one-time Master Promissory Note that is good for up to 10 years of continuous education.

Do Your Parents Need to Sign?

If you are borrowing a private student loan and a parent is acting as your cosigner, they will likely need to sign the promissory note.

If you’re taking out a federal student loan for your undergraduate education, you are the only borrower and your parents do not need to sign your MPN.

If a parent is borrowing a Direct PLUS Loan to help pay for your college education, however, they will need to sign an MPN. As with a student MPN, a parent needs to sign only a single MPN once every 10 years. The government can provide multiple loans based on one parent MPN.

How Long Does the Master Promissory Note Process Take?

According to the Department of Education, most people complete their Master Promissory Note online in less than 30 minutes. When you log into your account to fill out your MPN, keep in mind that the entire process must be completed in a single session, since you cannot save your progress.

The Takeaway

A student loan promissory note is a legally binding document in which the borrower agrees to repay the loan and any accrued interest and fees. The document also explains the terms and conditions of the loan, including fees, deferment options, and repayment plans. Federal student loan borrowers may be able to sign just one Master Promissory Note, which will cover all federal loans for a period of up to 10 years. Private lenders generally require a promissory note for each individual loan.

Understanding the terms and conditions laid out in your student promissory note will help you know what to expect when borrowing and ultimately repaying your student loans.

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

Do you have to do a master promissory note every year?

No, you do not have to sign a Master Promissory Note (MPN) every year for federal student loans. Once signed, it’s typically valid for up to 10 years and allows you to borrow multiple loans under that same MPN. MPNs are also not school-specific so you can typically use the same MPN even if you transfer colleges.

How do you get your student promissory note?

For federal loans, you can complete your Master Promissory Note on the Federal student aid website. It takes about 30 minutes to fill out and two to three business days to process. You will then be able to access (and download) your student promissory note by logging into your account.

For private loans, you may be able to sign your promissory note online or you may need to print it out, sign it, and mail it to the lender. You’ll receive a copy of your promissory note along with your other loan materials.

How long does it take for a master promissory note to process?

Once you submit the Master Promissory Note (MPN) online, it usually takes about two to three business days for processing. This time frame allows for the U.S. Department of Education to verify your information and communicate with your school regarding the loan. After your MPN is processed, your school will credit the loan funds to your account, and you can check your loan status on the Federal Student Aid website.

How do I get a copy of the promissory note for my student loan?

You can get a copy of your signed Master Promissory Note (MPN) for federal student loans by logging into your account on StudentAid.gov using your FSA ID. Navigate to your loan documents to find the MPN. You can then view, download, or print a copy for your personal records.

With a private student loan, your lender will typically provide you with a copy of the promissory note, along with several other documents, when they finalize the loan. If you can’t locate a copy, you can reach out to your lender and ask them to send you one.

Do I have to pay my student loans if I drop out of college?

Yes, even if you drop out of college, you’re still required to repay your student loans. Once you’re no longer enrolled in school at least half-time, student loans typically enter a grace period, which is often six months. After that, repayment begins. Dropping out does not eliminate your obligation to repay the debt, and failure to make payments could lead to loan default.

Federal loans do offer some borrower protections, however. Options like deferment, forbearance, or income-driven repayment plans may help if you experience difficulty repaying your loans after leaving school. Some private lenders also offer assistance for borrowers who hit challenging times.

Will a student loan affect my credit score?

Yes, student loans directly affect your credit score. Once you take out a student loan, it becomes part of your credit report and, like other types of loans, can impact your payment history, length of your credit history, and credit mix. Making timely payments can help you build a positive credit history. However, missed or late payments can negatively affect your credit and score.

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

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.

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.

SOSLR-Q324-026

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If you, like many people, cringe when it’s time to pay the check after dinner out with friends, there are solutions. It can get tedious and frustrating to try to figure out who had how many drinks, but dividing it evenly may not be fair to the person who just had an appetizer. Or you might find that there’s often one person (or more) who doesn’t have cash, making payment tricky. 

To avoid ending a fun evening by doing a lot of math or risking hurt feelings, try these strategies. Splitting the check can be easily wrangled with just a little advance planning.

6 Tips for Splitting the Bill With Friends

These tactics can help you split the bill and keep everyone happy. The next time you go out to dinner as a group, try one.

1. Pick a Place Where You Order at a Counter

You could go to a fast-casual restaurant that allows you to order at the counter on separate tabs and then enjoy your meal together at the table. If you’re on a tight budget and are trying to save money or you’ve had difficulty splitting checks with friends in the past, this allows you to avoid a sticky situation. Or you might have a local food hall where each guest can grab their own meal from a multitude of stalls and then dine together. 

As these styles of dining continue to grow in popularity, you and your friends can have your choice of cuisines — without blowing your budget or haggling over the bill.

2. Ask for Separate Checks — Before You Order

Having everyone in your party get their own separate check is another simple solution. The key is to ask your server for separate checks before you start ordering. That way, your server can track everyone’s order separately from the get-go. This can help you avoid the confusing chore of splitting the bill (“Who had the cappuccino?” etc.) after the meal has ended.

Still, be mindful of the extra work you’re asking your server to do. Some experts recommend limiting the number of separate checks you request to no more than four. Some restaurants may honor a request for more or less; you might ask and see.

Recommended: How to Manage Your Money: Tips to Do It Right

3. Have One Person Put the Bill on Credit

Another strategy for splitting the bill is to agree that one person will pay the bill with their credit card, and the rest of the group will reimburse them. This makes things easier for the server. Be sure to include the tax and tip in your calculations so that everyone pays their fair share.

Instead of cash, since most people don’t carry as much money around as they used to, you could use an app to transfer money from one friend to another. Or you can likely move funds from your checking account to the bill payer’s using tools your bank offers.

There can actually be perks to being the person who pays the bill. You might earn rewards when you charge the amount or you might qualify for other bonus offers. 

4. Use an App to Track Your Outings

There are a few apps, like Splitwise and Tab, that allow you to track and split purchases with friends. These bill-splitting apps divide the cost of the bill and assign each person what they owe. 

A number of these apps connect to payment platforms so that everyone can pay their share or transfer money to others in the group. If not, you might then designate one person to pay the bill, as described above, and then others pay them back.

In addition, many payment apps, including PayPal and Venmo, have bill splitting features that can help a group split a bill evenly or with custom amounts. And some apps allow a group to split a bill and pay their share from their bank account. 

Recommended: Guide to Mobile Wallets: What They Are and How They Work

5. Use Different Credit Cards to Pay

If you forgot to request separate checks at the start of the meal, you still have options for dividing the check. Confirm that the restaurant will take the number of credit cards you wish to pay with, then have everyone go through and tally up what they ordered.  Then ask for those amounts to be charged to the appropriate card card.

For instance, one person might say, “Can you please put $38 on this card?” and another would say, “Can you put the remaining $50 on mine?” Then you would each pay your bill, adding any tip you wish to leave.

Just be forewarned: Many restaurants will only want to split a bill two or three ways with this method. If there are eight of you out for the night, this is unlikely to be a good option. 

6. Split the Bill Evenly

Say there are three of you dining out and the bill comes to $120. You might not get into the details of which person had the two pricey mocktails vs. the others each having a single glass of wine. If each person just puts in $40 (plus tip), you’ve split the bill evenly and politely.

This concept works especially well when you’re ordering small plates, which are designed to be shared. After all, when you’re sharing all the food, even bill-splitting makes sense.

If there are certain dishes you’re not going to eat, you might want to speak up at the beginning of the meal and ask if it’s possible for you to get a separate check.

Recommended: 10 Personal Finance Basics

Splitting the Bill Etiquette

Here are a few tips to ensure that things stay polite when you split the bill.

Ask for a Separate Check ASAP

As noted above, if you’re watching your spending, mention upfront your interest in a separate check. You might tell your group that’s your plan or simply request a separate check from your server when they start taking the order. However you approach it, it can spare you bad feelings later or having your bank account take a major hit by getting stuck splitting a big bill evenly.

Don’t Splash Out if You’re Splitting the Bill Evenly

Be mindful of what you order if you are splitting the bill evenly. If everyone else is ordering $15 hamburgers and you order the $32 steak special, that’s not fair to others when the tab is divvied up. If you’ve got to have that steak, ask for separate checks, or else perhaps volunteer to pay the tip on the entire tab to compensate.

Share the Meal Appropriately

If you are splitting the bill evenly, keep an eye out to make sure everyone gets their share of the meal. For instance, just because the guacamole and chips were placed on the table next to one person, that doesn’t mean you can’t politely say, “Please pass that to our end of the table once you’ve had some.”

Try Not to Worry About Every Last Penny

Recognize that splitting bills can be less than precise. There’s a chance you may pay a couple of dollars more or less than the exact amount you owe. Sometimes, simplicity is the best path rather than getting into advanced math calculations which might yield a couple more dollars in your savings account but trigger bad feelings. It may be best not to contest amounts down to the last penny for the sake of preserving the good vibes.

The Takeaway

There are several ways to split a bill when dining out with friends. Some methods are to request separate checks, to eat at a restaurant where you order at a counter, or to have one person pay and then the others reimburse their share. These tactics can allow you to keep everything polite among your group while enjoying good food and good company. 

Consider opening a bank account that makes it easy to send money and split a bill. 

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

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FAQ

How do you politely split a bill?

How to split a bill politely can be accomplished in a variety of ways. You might request separate checks if your group is on the small side, or you might divide the bill evenly. Another option is for one person to pay the bill, and others pay them back. Or you could dine at a restaurant where you order at a counter or at a food hall. In these settings, each person can pay their own way and then eat with their group.

Is there a polite way to ask to split a bill?

A polite way to split the bill is to bring it up before you and the other diners begin ordering. That can simplify matters. You might say something like, “Before we order, does anyone have any ideas for splitting the bill?” or “I am just going to have an appetizer tonight, so I will ask for a separate check.”

How do you divide a bill?

There are usually two methods for dividing a bill. You can divide the bill evenly among all guests, so that each person pays the same amount, regardless of what they ordered. Or you can divide the bill so that each person only pays for their share, whether they ordered three courses or just had dessert. The latter, as you might guess, involves more math. As you decide on a method of splitting the bill, don’t forget to account for tax and tip.

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SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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