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In addition to typical banking and lending services, some credit unions also offer student loan refinancing opportunities. Refinancing student loans means that you pool all or some of your existing federal or private student loans into a new loan with a new, private lender. The goal is to achieve some sort of advantage when you refinance: for example, a lower interest rate or a lower monthly payment by extending your loan term.

It’s important to note that if you refinance federal student loans, you will forfeit access to federal repayment plans, such as the Standard, Graduated, and Extended Repayment plans.

Keep reading to learn more about how credit unions differ from traditional banks and why you may want to consider a credit union for student loan refinance.

How Credit Unions Differ from Traditional Banks

A credit union is a financial services cooperative that exists to serve its members. Products and services of a credit union typically include member education, financial planning help, mobile and online banking, checking and savings accounts, and the usual menu of loans.

Banks deliver many of the same types of services as credit unions. Their main goals are to benefit stakeholders and customers. But credit unions differ from traditional banks in one main way — they are nonprofit, whereas traditional banks are for-profit. Take a look at the comparison table below to learn more about the differences between credit unions vs. banks.

Pros and Cons of Refinancing Student Loans With a Credit Union

Credit unions can offer benefits that other lenders might not give you, but there are some downsides to watch out for as well. It’s a good idea to take a look at both the pros and cons before refinancing student loans with a credit union.

If you’re looking for more in-depth information, SoFi offers a comprehensive student loan refinancing guide.

Finding a Credit Union That Refinances Student Loans

Which credit unions refinance student loans? It’s a good idea to consider a wide variety of lenders before you land on a credit union, including national credit unions, local credit unions, alumni credit unions, and even church credit unions. Not every credit union offers student loan refinancing, so you’ll have to do a little homework based on where you’re likely to be able to tap into membership opportunities.

By the time you finish comparing and contrasting all of your options (including interest rates), you’ll have a better idea of what type of lender you should choose. In addition to searching around for the right lender, you can do a few other things to strengthen your overall profile.

Review your FICO® credit score, the three-digit number that tells lenders how well you handle debt. Your credit score can reveal the rate and terms you will likely receive. It’s a good idea to try for the highest credit score you can get. The higher your credit score, the more favorable your terms will be, which can help you save a significant amount of money over time.

Consider paying down other debts you have, such as personal loans or credit card debt. Lenders take a look at your debt-to-income (DTI) ratio, which compares your monthly debt to the income you bring in. The lower your DTI, the better your opportunities may be.

You can also assemble the types of documents that you know your lender may need, including government-issued identification (such as your driver’s license), pay stubs from your employer, and recent tax returns. It may speed up the process of loan approval once you apply for a student loan refinance with the credit union.

Recommended: What Is a Bad Credit Score?

Comparing Credit Union Loan Terms

Loan terms refer to all the conditions and options available to you when borrowing money. The key elements you should look for in a refinance lender are:

•   Interest rate: What interest rate will you receive from the lender? You want to be able to get a lower interest rate than what you have on your current loan(s). The lower the interest rate, the more money you’ll be able to save on your loan over time.

•   Payoff amount: Know the total “payoff amount” for each loan offer. Getting a round figure from each lender will let you determine the interest amount you’ll pay over your entire loan period. A student loan refinancing calculator can also help you calculate your final costs. You can also find out whether a 20-year student loan refinance or 30-year student loan refinance makes sense for your needs.

•   Fees. Some lenders charge fees to help cover the cost of servicing a loan. These may include origination fees, prepayment penalties, and late fees.

Besides loan terms, consider asking about flexible repayment options and customer service:

•   Flexible repayment options: What happens if you have trouble making your payments? Will your lender work with you? It’s a good idea to ask questions about the types of repayment options they offer in the case of a job loss or a demotion, for example.

•   Customer service: Will you get good customer service from the credit union you’re considering? Ask for references from current customers. You may also know of student loan refinance customers in your community who already use a particular credit union and who can talk to you about their experiences.

Recommended: When Should I Refinance My Student Loans?

Alternatives to Credit Unions for Student Loan Refinancing

What alternatives to credit unions do you have, and should you refinance student loans in the first place? You can refinance with banks, online lenders, and other financial institutions.

Some online banks and lenders differ in that they cannot accept cash deposits (to savings or checking accounts) from customers. Or they may only offer loans, lines of credit, and credit cards. Because they don’t accept cash deposits, online lenders face less stringent government requirements than traditional banks and credit unions.

Before you make a final decision about a credit union student loan refinance or alternative banking solution, take a look at the interest rates, overall payoff amounts, repayment options, and customer service reviews.

The Takeaway

You can refinance private student loans with a credit union (as well as federal student loans), but it isn’t your only option. Credit unions differ from traditional banks due to their nonprofit status, membership requirements, dividends offered to members, limited product offerings, and backing by the NCUA rather than the FDIC. Shop around to find the best loan terms (interest rate, repayment period, and fees) before you settle on a lender.

If you think refinancing might make sense for your situation, consider refinancing your student loans with SoFi. You can refinance online and pay zero fees.

Photo credit: iStock/SDI Productions

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.

A trade school, often called a vocational or technical school, provides specific job skills to start a career quickly in a given trade, with the requisite certifications and licenses. That career can range from being an electrician to a physician’s assistant to a cook. As opposed to a four-year college, a trade school education is generally completed in just two years and focuses on getting students hands-on experience and securing the job they want.

Trade school costs can vary anywhere from around $3,000 to $15,000+ per year. While trade school can be significantly less costly, and require less time, than a four year degree — there are still expenses to consider. Continue reading for more information on how expensive trade school is and planning for trade school costs.

What Is Trade School?

College is not for everyone. Trade school can provide a path to a rewarding career, without the time and money required to pursue a four-year degree.

As previously mentioned, trade school is a type of education that provides training in a specific job or skill set to allow students to start a given trade or career with the requisite certifications and appropriate licenses. Also known as vocational or technical schools, trade school can be a stepping stone into a career as a plumber, electrician, plumbing, dental hygienist, pharmacy technician, paralegal, and more.

Trade schools may be private or public institutions. And it can take as little as a few months to two plus years to complete a trade school program. Community colleges may offer vocational programs or more general education classes for students planning to transfer to a four-year institution.

How Much Does Trade School Cost

The cost of trade school can vary widely based on factors including the school, the program you are pursuing, your location. According to TradeSchools.net, the average cost of annual tuition at a trade school can range from $3,600 to $14,500.

Tuition

As mentioned, the cost of tuition can range dramatically, averaging anywhere from $3,600 to $14,500 per year. According to data from the U.S. Department of Education’s College Affordability and Transparency List, for the 2020-2021 school year, the average cost of tuition and fees at two year institutions was:

•   2-year, public — $3,863

•   2-year, private not-for-profit — $15,549

•   2-year, private for-profit — $15,033

•   Less than 2-year, public — $8,683

•   Less than 2-year, private not-for-profit — $13,127

•   Less than 2-year, private for-profit — $13,127

Books and Supplies

Again, the cost of books and supplies will vary based on the vocational program or trade school. According to data from The College Board, the average cost of books at a two-year public institution was $1,460 for the 2021-2022 school year.

Living Expenses

Unsurprisingly, the cost of living expenses can also vary quite dramatically from student to student. Some students who are attending trades school may be able to live at home with family members. This could help them reduce costs because they may be able to have little to no rent, and share meals with family members.

Trade school students who are living on their own may need to budget for more expensive living costs.

Paying for Trade School

When it comes to paying for college, or trade school, there are a few options available to students including loans, federal aid, grants, and more.

Trade School Loans

The term “trade school loan” is just a way to refer to a student loan, personal loan, or outside funding measure used to pay one’s way through a training or vocational school.

Many trade and vocational schools may qualify for federal student loans and other forms of federal financial aid. To apply for federal loans, students will need to fill out the Free Application for Federal Student Aid (FAFSA®) each year.

There are limits for federal student loans, and some students may consider a private student loan. Private student loans are available from private institutions but they may not offer the same benefits or protections as federal student loans.

After all other funding options have been exhausted, a private student loan could be a tool to help fill in the gaps. SoFi private student loans have zero fees and qualifying borrowers can secure competitive rates. While SoFi’s private student loans’ aren’t available to pay trade school, some graduate certification programs may qualify.

Working Part-Time

Trade schools generally offer flexible programming — for example, night classes — so students may be able to work part-time to fund their education. Students may consider getting a part-time job in the field they are studying, or working at a gig that is willing to accommodate their school schedule so they have enough time to take classes and study.

Financial Aid for Trade School

As already mentioned, trade schools may qualify for federal financial aid — including student loans, grants and scholarships. Federal aid can be used for technical schools and some certificate programs as long as the schools are accredited and eligible for federal funds. You can check the Department of Education’s database of qualifying schools to confirm your chosen trade school program qualifies.

Again, to apply for federal financial aid, students will need to fill out the FAFSA each year.

Grants

Students at eligible trade schools may qualify for a Pell Grant. A Pell Grant is a type of federal grant that is awarded to students who demonstrate exceptional financial need.

Scholarships

There may also be scholarships available for trade school students. Certain trade schools may offer scholarships and there are vocational school scholarships available from private organizations too. Check in with your school’s financial aid office for more information or look through an online database or SoFi’s scholarship search tool to peruse scholarships you may be eligible for.

Tips on Selecting a Worthwhile Program

Trade school can make a lot of sense for students who are interested in pursuing a specific vocation and are not interested in attending a more traditional four-year school. To evaluate trade schools, consider the following factors:

•   Program Accreditation. This can give you an idea of a program’s reputation. Accredited schools may qualify for federal financial aid.

•   Time to complete. This can inform the total cost of the program.

•   Opportunities for paid on-the-job training. Some programs may offer a combination of in-classroom learning and paid job training. Gaining this real world experience can be valuable.

•   Employment assistance or support. Some trade schools have close connections with local businesses or industries. Find out if there is a career connections office or any job placement assistance.

Private Student Loans for Trade School

SoFi doesn’t offer student loans for trade school programs, but does offer student loans for eligible graduate certificate programs. If you’re a college student interested in pursuing a certificate program, a SoFi private loan could be a tool to help you finance the program.

SoFi student loans have zero fees and qualifying borrowers can secure competitive interest rates. Find out if you prequalify in just a few minutes.

FAQ

Are trade schools more affordable than 4-year universities?

Trade schools are generally more affordable than a college or university. In addition to having a more affordable annual tuition, typically trade school programs can be completed in less than four years.

What are the most high-paying trade jobs?

According to Accredited Schools Online, some of the top-paid trades school jobs include construction managers, radiation therapists, and dental hygienists.

How long is trade school?

The length of trade school can vary based on the program. Some trades school programs can be completed in a few months while others may take two years to complete.

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

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

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.

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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Challenges to Biden’s student loan forgiveness plan have created uncertainty and confusion for the more than 40 million borrowers (including college students who were enrolled before June 30, 2022) who may be eligible for debt relief through the program.

On Thursday, Nov. 11, a U.S. District judge in Fort Worth, Texas, ruled in a lawsuit that the plan is unconstitutional. As a result, the Department of Education has stopped accepting applications for student loan forgiveness and is holding the applications it has already received. The Biden administration is appealing the judgment.

To help borrowers in the meantime, on Nov. 22, the U.S. Department of Education issued a new extension of the pause on student loan repayment, interest, and collections to let the Supreme Court rule on whether the forgiveness plan can go into effect. Federal student loan payments may now be extended as long as 60 days after June 30, 2023. The pause is meant to “alleviate uncertainty for borrowers,” according to the administration.

Legal Challenges to the Student Loan Forgiveness Plan

The President’s debt relief plan calls for up to $10,000 in forgiveness for federal student loan borrowers who earn less than $125,000 a year ($250,000 for married couples) and up to $20,000 in relief for Pell Grant recipients. As mentioned earlier, current students who were enrolled before June 30, 2022, may be eligible for this one-time forgiveness. (Borrowers of private student loans are not eligible.)

The Biden administration determined that the president has the authority to wipe out this kind of student debt under the Heroes Act of 2003. Passed in the wake of the 9/11 terrorist attacks, the Higher Education Relief Opportunities for Students Act gives the Secretary of Education the authority to change federal student aid provisions in the event of a war, military operation, or national emergency.

Because the pandemic was declared a national emergency in March 2020, the administration believes that the Education Secretary has the legal authority to provide debt relief under the act. Both former President Trump and President Biden used the Heroes Act to pause student loan payments during the pandemic. The extension that was just announced on Nov. 22 extends the pause well into 2023.

Six lawsuits have been filed against the plan resulting in two blocks against it. Opponents challenging Biden’s student loan forgiveness program make three primary legal arguments against the administration’s premise:

The No-Worse-Off Clause

Some politicians and legal experts question whether using the Heroes Act is appropriate. Among other things, they point to a clause in the act that says action on student financing can only be taken to ensure people “are not placed in a worse position financially” because of the emergency. The student loan pause, for instance, is designed to make sure that borrowers are no worse off when repayment starts than they were when the pandemic began. However, opponents argue that forgiveness puts borrowers in a better position financially because they will no longer have to pay all or part of their student loans.

Congress Controls the Money

Many lawmakers opposed to the program also say the Biden administration is overstepping its reach. The debt cancellation program could cost as much as $519 billion dollars over 10 years, according to some recent estimates. The Constitution states that Congress controls government funds, and the president and federal agencies may not spend money that has not been appropriated by Congress. Although Congress itself has enacted several specific student loan forgiveness programs — such as those for teachers or permanently disabled borrowers — it has not passed a broad student loan program forgiveness plan.

A Recent Supreme Court Decision

Activities of federal agencies like the Department of Education may come under more scrutiny in the wake of the recent U.S. Supreme Court decision regarding West Virginia v. Environmental Protection Agency. That decision clarified the “major questions doctrine,” which says that federal agencies are limited in making decisions that have “vast economic and political significance” without guidance from Congress. Proponents of the loan forgiveness plan worry this doctrine will be used against the program. Opponents believe they have legal precedent.

Recommended: Student Loan Forgiveness Programs

What Happens Next With the Legal Challenges?

On November 14, the 8th U.S. Circuit Court of Appeals granted an injunction request by six states to halt the debt relief plan. The Biden administration has asked the Supreme Court to put that decision on hold as well as the November 11th Texas District Court ruling. The U.S. Justice Department also suggested that the Supreme Court separately take up the case of student debt relief during its current term.

Whether Biden’s student loan forgiveness plan will happen is still up in the air. As the legal challenges play out, borrowers can sign up for updates at the DOE’s Student Aid site.

Recommended: Will My Federal Student Loan Payment Change in 2023?

Logistical Challenges to the Student Loan Forgiveness Plan

In addition to the lawsuits, there are other challenges to overcome in implementing the program. Dealing with millions of dollars of canceled debt at numerous different loan servicing companies may be difficult if the plan proceeds. Right after the August announcement of the student loan forgiveness plan, the Department of Education’s financial aid website crashed, as did the sites of many loan servicers. That raises questions about how prepared the government and the private loan servicers are to handle the onslaught of forgiveness activity.

Recommended: Types of Federal Student Loans

The Takeaway

The Biden administration’s plan to forgive a large chunk of federal student debt was welcome news to borrowers. But it came with significant legal challenges, resulting in six lawsuits (so far). The Biden administration has asked the Supreme Court to rule on whether the plan can go into effect. To help borrowers, the pause of student loan repayment has been extended again. SoFi will continue to keep you updated on developments with the student loan forgiveness program.

In the meantime, you may want to consider how best to handle your student loan debt. Even if you are eligible to have a portion of it forgiven, you will still need to pay off the remainder of your loans. Or perhaps you have private loans, which don’t qualify under the forgiveness program. Refinancing your student loans might lead to lower monthly payments. And that’s especially important to think about now, as interest rates continue to rise. Explore student loan refinancing with SoFi to see what your options are.

FAQ

Will Biden student loan forgiveness stand in court?

It’s uncertain whether the student loan forgiveness plan can stand in court. Currently, six lawsuits have been filed against the plan, and the administration has asked the Supreme Court to rule on whether the plan can go into effect.

Who would challenge Biden’s student loan forgiveness?

Many Republican lawmakers, some Democratic lawmakers, and some economists and education experts are against the plan. Six lawsuits have currently been filed against it.

What are the possible delays to Biden’s student loan forgiveness?

Legal challenges have put the plan on hold. The Department of Education has stopped accepting applications for student loan forgiveness and is holding the applications it has already received.

Photo credit: iStock/Inside Creative House

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.

Truth be told, there’s no such thing as a good time to lose your job. Unfortunately, a layoff typically does not stop the influx of bills. Generally speaking, people need to cover their monthly burn rates no matter what.

Luckily, individuals who find themselves in such a tough position have options. Before resorting to pulling out the big guns, like forbearance — a pause in monthly payments toward a loan — or other options that can potentially hurt your credit, it’s worth taking a look at all of the choices on the table. That way, you’ll fully understand your options and their implications before making a move when you’ve lost your job and can’t pay your bills.

First Thing’s First: Tracking Expenses

Even the richest people on Earth might benefit from re-examining their expenses and looking for ways to cut monthly costs. Although debt and a precarious employment situation can make the path back to stability feel out of grasp, getting one’s expenses in order is an important first step toward regaining control.

A clear-cut way to save money on food is to minimize or eliminate getting takeout from restaurants. That drive-through latte might feel like a part of the daily routine to preserve sanity and get a much-needed caffeine boost. But in the long run, these small expenses can add up to hundreds or even thousands of dollars in savings when curbed.

When it comes to groceries, it helps to make a list before shopping. Start a Google Doc for the household and add to it as needs arise. Shift away from living to eat and try to adapt to eating to live. It’s easier that way to eat healthier, and, like coffee, snacks can wallop the bottom line.

In addition to making a grocery list, another great rule to adopt is setting a shopping limit. Stop buying things, from anywhere, on impulse. For groceries, maybe set a maximum total per trip.

Also try to get in the habit of keeping eyes peeled for coupons and promo codes, or installing coupon apps like Honey or Rakuten. Many of those types of apps have browser-extension versions, meaning that while you’re surfing the internet, coupons will automatically be displayed when looking at potential purchases.

Also keep in mind that while grocery pickup and delivery services like Instacart are convenient, the fees can add up, including local sales tax. Even if it feels like a hassle, DIY-ing your grocery shopping is another way you can save.

Saving More, Spending Less

Losing a job is obviously never a good thing, but it might be a catalyst for reducing non-essential credit card spending and becoming more goal-oriented in general. Many would argue that credit cards can be dangerous because they help people buy things they might not be able to afford.

Articles about budgeting (including emergency funds, which would apply to the situation explored in this piece) are worth a read and can inform a broader strategy of saving over spending. But understand that saving with many outstanding debts is less about amassing wealth and more about getting tactical with repayment. A checking and savings account can help you to track daily, weekly, or monthly spending to identify where cutbacks might be possible.

Reaching for Lifelines

Even with modified spending habits and a new budget, a loan due is a loan due — or at least a situation that won’t go away without dealing with it. The reason you lost your job will form a fork in the road of sorts about how to proceed.

If you voluntarily quit without good cause, then unemployment benefits probably will not be available. But usually the first part of a survival plan for unemployment — loans or not — is to get into the system for unemployment, if possible. To get started, this unemployment benefits finder can help, as can exploring unemployment resources by state.

With that in the pipeline, it’s time to grit down, pick up the phone, and call your lender. Many lenders have forbearance and deferment programs in place for their customers, but it’s generally up to the customer to reach out and ask for help.

Forbearance is an option offered in many lending agreements. The terms vary, but it can open the door to a revised agreement that may allow for decreased or delayed payments for a specific period of time, often up to 12 months. Some lenders may offer to reduce the interest rate charged on the debt, but there are no federal guidelines requiring specific terms for forbearance agreements across all industries (with the exception of federal student loans).

On the surface, this sounds wholly positive, but be forewarned that these options can significantly affect credit history and credit scores. The effects on credit depend on the type of loan and the lender. Also realize that interest will usually accrue and be added to your principal balance at the end of a forbearance period.

Looking Out for Debt Traps

Debt can lead to an even more desperate situation after a hasty decision. It’s worth highlighting a couple potential debt traps to consider eliminating altogether as you navigate dealing with your loans after a job loss:

•   Turning to payday loans: Payday loans are a popular “break in case of emergency” option because they’re small, short-term, unsecured loans. People often turn to them when they struggle to get through to the next payday, which is also when the loan balance and interest will become due.

   But even at a glance, it’s clear to see the trouble ahead: The large fees and hefty interest rates common to payday loans can leave borrowers with less to spend each month, even though payday loans can help with getting out of an immediate bind. But it’s a bit like wriggling loose from one bind and taking shelter in another.

•   Leaning on credit cards: While it might be tempting to use credit cards to cover what’s owed on an existing loan, it can be a slippery slope. Compounding interest can mean replacing one trap with another. It’s a well-intentioned approach that seems sound, but a better alternative might be a personal loan with a fixed interest rate and no fees.

Moving Forward

The main thing to remember for anyone who is out of work and still responsible for loans is: You are not alone. It might seem difficult, even impossible, but it is doable — and even the longest journeys begin with taking the first steps. After you’ve started tracking your expenses, cutting back on costs, and reaching for lifelines through unemployment benefits and your lender, the next step in dealing with loan payments after a job loss is to explore your options.

Rather than turning to potential debt traps like payday loans and credit cards, you might consider a personal loan. SoFi, for instance, offers unsecured personal loans fixed interest rates and no fee options. Learn more and consider applying for a personal loan today.

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.

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.

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Having the newest iPhone and a 60-inch TV in every room of your house might sound like a dream worth aspiring to, but hold that thought. If you are trying to grow your savings, start investing, or get out of debt, it’s important to scale back all kinds of spending, including on electronics.

In today’s digital world, having access to a smartphone and laptop — not to mention things like Bluetooth headphones, a smart TV, and maybe even a smartwatch — can be crucial for our remote jobs, connecting with friends and family, and staying informed about the world around us.

So how can you buy the electronics you need for daily life without going broke? In this article, we’ll explore, among other topics, the following:

•   How to save money on electronics

•   How to shop at the right time

•   How to sell old electronics

•   How to get the best discounts.

1. Buying Older Models Instead of the Newest Models

The joke goes that you could buy the newest smartphone today, and it’ll probably be replaced by a newer model within a week. While technology cycles aren’t quite that fast, companies like Apple, Google, and Microsoft do release “newer, better” phones, tablets, computers, and other tech regularly.

Just remember: You don’t always need the newest tablet. You don’t always have to upgrade your phone. If your technology still operates efficiently — allowing you to take decent photos, reply to work emails, and stay connected via social media or phone calls, all without issue — hold onto it longer. With a little money discipline, you could instead use those funds to build your emergency savings, pay down your debt, or start investing.

And when it does come time to buy a new device, consider buying the second-newest generation. Features are likely similar to the newer device, but prices will be lower. This is particularly true right around the launch of the new generation.

2. Avoiding Consumerism

An easy way to save on electronics is to reject the idea of consumerism. Consumerism is the belief that your well-being, happiness, and even sense of self-worth will increase the more that you spend money on goods and services.

But according to the American Psychological Association, the reverse seems to be true. While it’s not fair to generalize, studies typically show that the least materialistic people report the greatest life satisfaction.

Thus, what might feel like an irresistible craving for the latest technology could actually be detrimental to one’s mental health. Consume your technology in moderation — treat yourself to nice things, but remember that spending won’t always lead to fulfillment. In fact, you may find that committing to how much money to save each month brings greater satisfaction.

3. Trading In and Selling Unwanted Electronics

If you have a junk drawer with old smartphones or a storage container with old laptops, you might be leaving money on the table (or in the junk drawer, as it were).

For example, many second-hand stores buy electronics like video game consoles — and they’ll pay you for the controllers and games too. Some smartphone vendors will allow you to trade in an older-model phone when you purchase a new one.

And there’s always the internet. Amazon, eBay, Facebook Marketplace, and other online retailers allow you to easily sell old electronics, including phones, TVs, and even appliances. You can then use that money when it’s time to upgrade to a new electronic device or add it to your emergency fund.

The resale market is soaring; it’s expected to grow to $53 billion a year in 2023. Now is a great time to start selling your old tech.

4. Considering Needs Over Wants

If you are struggling to decide whether you should buy a new phone or computer, assess your needs. Beyond determining if your current phone or computer works well enough for you to do your job and live conveniently, take some time to look at your budget.

Do you have enough money to cover actual needs like housing, food, and utilities? Are you able to pay off your credit card each month and make student loan payments? Can you cover an unexpected hospital bill or emergency car repair and meet other money-saving goals?

If you’re confident that you can successfully meet your needs without too much of a struggle, it can be easier to justify splurging on a want.

5. Unplugging Devices That Are Not in Use

Have you heard of phantom or vampire energy use? That’s when you leave something plugged in when not in use and it continues to draw electrical power, which you wind up paying for.

The U.S. Department of Energy recommends unplugging certain appliances when not in use to decrease your standby power loads and thus reduce your monthly electric bill.

The daily savings are hardly noticeable, but over time, unplugging certain devices when not in use, like a toaster oven or a laptop in sleep mode, can lead to significant savings — about $100 a year for the average household.

Recommended: Learn the Difference Between Impulsive and Compulsive Shopping

6. Researching and Buying Refurbished Electronics

Refurbished electronics are a great way to get a like-new electronic without digging deep into your pocket. Such electronics don’t always have the luxury of an extended warranty, but many are available with some type of warranty (and maybe even a money-back guarantee).

And you can get a deal on more than just refurbished smartphones. According to Consumer Reports, you can find great deals on speakers, tablets, headphones, and smartwatches.

Just make sure you’re buying a refurbished electronic directly from the manufacturer or from an organization that complies with ISO (International Organization for Standardization) or R2 (Responsible Recycling).

7. Buying at the Right Time

Here’s another way to save on electronics: Sync up with sales. You might find better deals if you are strategic about when you purchase TVs, laptops, and video game consoles. Typically, you can find Black Friday and Cyber Monday sales, and the week after Christmas can also be an excellent time of the year to buy electronics.

You can also watch for deals around Tax Day, Memorial Day, and Labor Day. And if you’re buying an older-generation model, try timing it with the release of the newer version for greater discounts.

Recommended: Why You Should Save Money

8. Utilizing Price Matching

It might be challenging to get cell phone providers to match prices of competitors, but when shopping for other electronics, like computers, video game consoles, TVs, and appliances, you might have luck getting big-box retailers to price match.

In fact, some popular stores have official price-matching programs — and may even price-match the deals you find on Amazon. Try price matching when shopping for electronics at stores like Walmart, Target, and Best Buy.

9. Shopping Around and Being Patient

Shopping is usually not a good time to be lazy. While it can be tempting to buy your coveted electronic at the first place you see it, it can be important to do some research. Comparison-shop online, research upcoming sales, and utilize coupons and store discounts to get the best deal at the right time.

10. Taking Advantage of Savings Codes

You won’t always be successful, but it’s worth browsing online for savings codes before any major purchase. Sites like GroupOn, RetailMeNot, and Savings.com all offer discount codes that you may be able to apply to your purchase.

You can also look for promotional codes in circulars that arrive in the mail, during podcasts, or from influencers on social media.

Recommended: How Bill Pay Works

11. Utilizing Student Discounts

If you are a student, it can be a good idea before any purchase to ask if the company offers a student discount. The worst they can say is no. Just keep your student ID in your wallet for verification.

You can also ask about other common discounts you might qualify for, like a military discount or senior discount.

12. Not Always Going for Brand-Name or High-End Products

A brand-new iPhone and Samsung TV may sound like the height of luxury, but if you’re trying to be smart about how you spend your money on electronics, consider skipping the most popular brand name or top-of-the-line product options.

A lesser-known brand may perform well and save you money. Before purchasing an unfamiliar brand, however, it is a good idea to read product reviews on third-party websites.

Recommended: How to Force Yourself to Save Money

Saving Money With SoFi

A savings account with a high APY is a good way to save toward all of life’s goals, including electronics. And having a no-fee checking account makes it easier to spend when you’re ready. SoFi’s online bank account delivers the best of both worlds. Sign up for our Checking and Savings with direct deposit to earn a competitive APY, get cash back on local purchases, and pay no fees.

FAQ

Can you live without electronics?

Technically speaking, it is possible to live without electronics, just as our ancestors did before us. However, technology is now often essential to how we work, how we communicate, how we find information, how we shop, how we find entertainment, and even how we bank and access healthcare. Staying connected and spending money on electronics is fine — everything in moderation.

Can you live while being an electronics minimalist?

Living as an electronics minimalist is possible. You may still need access to a computer for work or online bill pay and a phone to communicate with your family, but you can take specific, impactful steps to otherwise reduce your electronics. For instance, you can sell your TV, downgrade to a basic phone, delete your social media, etc. Then, seek out other experiences, like hiking, attending live theater, and reading.

How much technology should I use per day?

Experts recommend limiting screen time to two hours a day max (outside of work). This includes time spent on your phone or tablet, watching TV, and playing video games. That said, estimates of how much total screen time most Americans invest has been estimated at almost eight hours a day.

Photo credit: iStock/LightFieldStudios

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.

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.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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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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