Student Loans

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Editor’s Note: Since the writing of this article, President Biden signed the debt ceiling bill on June 4, canceling the federal student loan payment pause as of Aug 30, or “60 days after June 30.” Later this month, the Supreme Court will decide whether the Biden-Harris Administration’s Student Debt Relief Program can proceed. Loan payments are expected to resume in October.

Student loans are a significant issue in the United States, where consumers have more than $1.7 trillion in total student loan debt. In 2021, the average federal student loan debt per borrower was just over $37,000. And 20 years after students enter college, half of borrowers still owe $20,000 in student loans.

Broken down by degree levels, the debt increases. Graduate students who receive a degree leave school with an average of nearly $70,000 in debt. Law students are saddled with an average of $180,000; and medical students owe $250,000 on average for total student loan debt.

With so many borrowers and so much debt, it begs the question, “Should all student loan debt be forgiven?”

Who’s in Favor?

By a 2-to-1 margin, voters do support at least some student loans being forgiven, according to a poll from Politico and Morning Consult. And 53% of voters from the same poll support Biden’s extension of student loan payments through August.

Proponents of canceling student loan debt point out that the government is partially responsible for this debt crisis. Because many states slashed higher education funding after the 2008 recession, tuition at both public and private colleges has gone up steeply, and many students have been forced to take out even more in loans.

Unfortunately, the increase in student loan balances hasn’t gone hand in hand with a bump in post-college salary. The result is a national situation where borrowers owe increasingly more in student loans but don’t have the paycheck to aggressively tackle their balances.

Although the government has created income-driven repayment options that seek to keep monthly student loan payments affordable, signing up isn’t without its downsides.

Since these income-driven plans often lengthen loan terms, borrowers may pay significantly more interest on their loans over time. Also, any forgiven balance at the end of their loan term is typically treated as taxable income.

Why Forgiving Student Loan Debt a Isn’t a Slam-Dunk

There are several reasons why forgiving student loan debt may not be a straightforward positive. The first is that, according to U.S. tax laws, debt that’s forgiven is a taxable event. Under income-driven student loan repayment plans, for instance, if you make consistent, on-time payments for the life of the loan (20 or 25 years, depending on when you borrowed), any balance remaining at the end of your loan term is forgiven — but whatever’s forgiven is considered taxable income.

The second issue pundits raise with this plan is that it’s being sold as a stimulus: If the government forgives people’s student loan debt, they’ll put money back into the economy, the thinking goes. But forgiving debt isn’t the same as handing people a check.

And finally, the federal government so far isn’t planning to forgive student loans that borrowers hold with private lenders, which average over $54,000 per borrower.

Alternative Options to Canceling Student Loan Debt

Instead of targeting only student loan borrowers who qualify for relief, the government could provide a stimulus check to all Americans, and Americans could decide for themselves how to use it.

If someone has $10,000 in outstanding student loans, for example, they might prefer to use a check to put a down payment on a house or pay off high-interest credit card debt.

Then there’s the higher education system itself. Canceling or forgiving student loan debt may provide only temporary relief as long as tuition levels continue to rise. As it stands, future generations will be saddled with just as much, if not more, student debt than Americans currently have today.

Tackling Your Student Loan Debt

There’s no telling when or if some form of more long-term relief might appear for student loan borrowers. If you’re struggling under the weight of your student debt, there are strategies that might help:

•   Alternative payment plans: Federal student loans come with a variety of repayment options, one of which might suit your situation.

•   Direction of overpayments: If you make extra payments on your student loans, you may instruct your servicer to apply them to your principal, rather than the next month’s payment plus interest. This will help pay off your loans faster.

•   “Found” money: If you receive a work bonus or tax refund, applying it to your student loans can help reduce your balance faster.

•   Refinancing: Refinancing student loans (private and/or federal) into one new loan with a private lender could lower your monthly payment and interest rate, and make it easier to manage payments. Just know that refinancing federal student loans with a private lender means losing access to federal repayment and forgiveness programs.

Recommended: Can Refinanced Student Loans Still Be Forgiven?

The Takeaway

There is no quick fix for student loan debt, which will take further discussion from stakeholders on all sides.

If you are struggling with your own student loan debt, there are options to consider. You can apply for an income-driven repayment plan, apply for student loan deferment or forbearance on your federal student loans, or refinance your loans with a private lender. Keep in mind, though, that refinancing disqualifies you from federal benefits you may otherwise be eligible for.

If you do decide to refinance, consider SoFi. SoFi has a quick online application process, competitive rates, and no origination fees or prepayment penalties.

See if you prequalify with SoFi in just two minutes.

SoFi Student Loan Refinance
If you are looking to refinance federal student loans, please be aware that the White House has announced up to $20,000 of student loan forgiveness for Pell Grant recipients and $10,000 for qualifying borrowers whose student loans are federally held. Additionally, the federal student loan payment pause and interest holiday has been extended beyond December 31, 2022. Please carefully consider these changes before refinancing federally held loans with SoFi, since the amount or portion of your federal student debt that you refinance will no longer qualify for the federal loan payment suspension, interest waiver, or any other current or future benefits applicable to federal loans. If you qualify for federal student loan forgiveness and still wish to refinance, leave unrefinanced the amount you expect to be forgiven to receive your federal benefit.

CLICK HERE for more information.

Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

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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Source: sofi.com

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Failing one class does not mean you’ll automatically lose access to federal financial aid. But these funds do have academic eligibility requirements, as outlined in your school’s satisfactory academic progress (SAP) guidelines. So if you fail to meet the SAP requirements set by your school’s financial aid office, you could be cut off from future aid.

Federal aid — any aid you received by submitting the Free Application for Federal Student Aid (FAFSA) — could include need-based grants, work-study and federal student loans. These could be taken away if you violate your school’s SAP policy.

Each institution defines its own SAP policy, so requirements could vary. But many schools follow these guidelines.

Students must:

  • Maintain a minimum cumulative GPA between 1.6 and 2.0.

  • Complete at least 67% of all attempted credit hours.

  • Finish a degree in no more than 150% of the program’s average number of required credit hours. (If the degree typically requires 120 credits, you can only get financial aid for 180 credits — including classes that you failed or dropped.)

Contact your school’s financial aid office for information on your specific SAP requirements.

What happens if you fall below your school’s SAP requirement?

Before cutting your access to federal financial aid, a school may issue a warning and put you on probation. You may still have access to federal funds during this time, but your grades, for example, are expected to improve. If you do not achieve SAP standards by the conclusion of your probation, you will be unable to receive federal funds until you do. How long you’re ineligible for aid depends on how often the school evaluates student performance.

Some schools only offer SAP probation if you fail to meet academic guidelines due to extenuating circumstances, such as a death in the family or serious illness or injury. By submitting a satisfactory academic progress appeal, you can explain why you could not meet SAP standards and why you believe you will be able to meet those standards in the future. If your appeal is approved, you may be able to maintain financial aid eligibility while the college monitors your progress.

How to regain eligibility for financial aid

To regain access to federal aid, you’ll need to show your institution that you can make satisfactory academic progress as outlined by the financial aid office. You might need to:

File a satisfactory academic progress appeal. Depending on the school’s process, filing an approved SAP appeal could help you regain access to aid faster by placing you on probation, where your performance is evaluated more frequently.

Retake courses at your current school. To improve your GPA or pass more classes, you may need to retake what you previously failed. This can be hard to do without federal financial aid. You may need to consider private student loans to close the temporary gap in funding — but only if you have a solid plan to improve your grades and meet SAP standards.

Transfer to a less expensive college. Improving your grades without financial aid is no small feat. Consider transferring to a less expensive university or community college while you raise your GPA and accumulate enough credits to meet SAP requirements. You can also enroll part-time so that you can work while taking classes.

Submit the FAFSA every year. Your completed FAFSA is valid for one academic year. Complete the FAFSA each year to qualify for federal aid, especially if you’re in better academic standing and are now meeting SAP requirements.

Source: nerdwallet.com

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Lindsay Mack earned her bachelor’s degree from Georgetown University in 2005. Nearly 15 years later, when she considered the best way to grow her business acumen, an MBA was not it.

Mack, who is from Philadelphia, grew her career without an MBA. When ready to advance her skills in platform strategy, she opted for a faster, lower-cost cohort program instead.

For students like Mack, the cost of a top MBA — averaging $225,605 in the U.S., according to a 2022 report by BusinessBecause, an online publisher of graduate business content — is daunting, and the value is questionable.

“I didn’t see how making such a significant investment (in an MBA) would really leapfrog me to the next level,” says Mack, now Comcast’s executive director of product management.

Cost isn’t the only barrier to attaining a graduate business degree. BusinessBecause reports that the average acceptance rate for the most competitive U.S. business schools is 16%, based on its analysis of data from U.S. News & World Report and other sources.

If you want access to business school education without the price of tuition or hassle of admissions, you have other options.

If you prioritize credentials

Consider a graduate business certification. A certification — offered by accredited colleges and universities — differs from an MBA degree primarily in how long it takes to complete the program.

For example, a graduate business certificate from the University of Nebraska–Lincoln College of Business requires 12 credit hours to graduate. An MBA from the same university needs 48 credit hours for completion.

Because you’re taking fewer credits compared to an MBA, you can expect to pay much less. For example — based on the 2022-23 academic year — tuition for a graduate certificate in strategic management from Harvard Extension School, a Harvard Division of Continuing Education, is $15,500. A Harvard MBA costs $73,440 in tuition, not including fees.

Certificate programs are often more specialized than graduate business degrees. This can be great for those looking to develop a specific skill set — like business analytics — to advance in their career, says Olivia Jobson, associate director of graduate recruitment at Oregon State University College of Business.

If you need a more flexible schedule

Consider a self-guided online course. Companies like MasterClass, Skillshare, Udemy and Coursera let you learn business skills at your own pace.

“Our central tenet is to meet learners where they are,” says Marni Baker Stein, Park City, Utah-based chief content officer at Coursera. The company offers individual courses, professional and credentialed certifications, and full degrees through university partnerships.

Many online companies allow you to access some courses for free, but the full libraries require a monthly subscription. MasterClass, for example, offers unlimited access to existing and new content for $180 annually.

Unless partnering with an accredited institution, these programs typically do not offer credits for completion. If you need credits to transfer to a university, consider enrolling in an accredited program.

If you want more of the MBA experience

Consider a business training cohort. Though it’s hard to replicate the two-year, in-person MBA experience, some companies creatively found ways to incorporate its key components into online learning.

Section, a New York City-based online business education company, for example, offers one- to two-week online sprints structured much like sections within an MBA program. Members participate in live classes online, group discussions and even team projects for $996 per year.

Similarly, the Invited MBA, by Texas-based corporate leadership development company Abilitie, offers a 12-week program that includes live virtual sessions, team business competitions, study groups and even online happy hours. Tuition is $1,850.

Companies like Section and Abilitie are not accredited universities. Graduating from these programs will not result in an MBA degree, but some graduates of the programs say it delivered exactly what they needed — practical business skills, a strong network and greater employability at a fraction of the cost of an MBA.

“I have folks who are at the exact same level as I am, who did full-time MBAs and have school debt, and I am now peers with them,” says Nicholas Schroeder, a Seattle-based graduate of Abilitie’s Invited MBA.

Upon completing the Invited MBA in May 2021, Schroeder, a former U.S. Army officer, transitioned into a career in consulting — the most coveted industry for prospective graduate management students, according to a 2022 survey by the Graduate Management Admission Council, an association of graduate business schools.

This article was written by NerdWallet and was originally published by The Associated Press.

Source: nerdwallet.com

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There’s almost nothing as ominous as the phrase “finals week.” Cue the thoughts of cramming, sleep deprivation, and high anxiety. The stress the two words can induce is almost universal among college students.

However, students can both survive and succeed during finals week as long as they prepare. Here are four tips to help students get ready for finals week.

Getting organized is a great way to feel in control before finals begin. College finals week doesn’t have to blindside students, forcing them into all-nighters and sleepovers in the library. There are a couple of things students can do to get set up for finals week.

Memorize Your Finals Schedule

The dates for finals week are usually available from the beginning of a semester. This may vary by school, but students can sometimes find their finals information in their syllabus.

Memorizing the schedule and writing it down will ensure that students don’t forget to study for any exams and can budget enough time for each test.

Make a Study Plan

Once students have their finals schedule memorized, they can start mapping out their study strategy. Students can base their study tips on which finals will require the most studying and the dates they occur.

It is recommended that students avoid long cram sessions. Studying ahead of time in shorter increments helps to retain information. This is why mapping out a study plan ahead of time can be helpful.

When making a plan, there are different strategies students can use. They can create a schedule based on the difficulty level of the tests, choosing to set aside more time to study for the finals that will be the most challenging for them.

They can also plan their schedule based on the order of their finals, saving more time later on to study for the last exams.

Having a plan can help students avoid cramming, spending too much time studying for one final over another, or forgetting to study for one altogether.

Recommended: Do Grades Affect Student Loans?

2. Keep Your Body Healthy

As tempting as it is to stay in the library 24/7 living on ramen and coffee, staying physically healthy during finals week is important for bringing home those good grades.

Eating a balanced diet — yes, that means fruits and veggies too, before and during finals week — can help students stay focused and avoid getting sick during finals.

Drinking water is also a good idea when plotting to ace those finals. Dehydration can have many negative effects, like tiredness, headaches, reduced alertness, and diminished concentration, which could affect test performance. Even drinking water during an exam can lead to better performance.

Another important piece of staying healthy is getting enough sleep. It’s common to see students pulling all-nighters in the library during finals week, but a lack of sleep can result in a worse memory and therefore, an inability to remember what has been studied. Missing out on a full night’s sleep can be detrimental to students’ ability to pass their exams.

Exercising is also often deprioritized during finals week. Students are so focused on studying that it’s easy to skip that 30-minute workout. Exercise, though, needs to find a place in a hectic schedule because it will benefit a student during this stressful time. Exercise can both lower stress and maintain high-level brain functioning, leading to a better chance of crushing those exams.

3. Keep Your Mind Healthy

Maintaining good mental health during the school year may already be a challenge, but especially during finals week it’s important to pay attention to and take care of mental health.

Even students who don’t regularly have anxiety may experience it during finals week. There are many calming techniques available to ease anxiety, and each student should see what feels best. Here are a few techniques they can try.

•   Breathing. There are tons of breathing techniques out there that can help with anxiety or stress. Students should look up a few simple ones and see what works best for them.

•   Grounding. This is a technique where students focus on their senses, naming five things they can see, four things they can feel, three things they can hear, two things they can smell, and one thing they can taste. Doing this can reduce anxiety or panic and help students stay focused.

•   Meditation. Taking up a daily meditation practice before studying and before exams start could help a person stay calm during stressful events. There are lots of meditation apps available as well as guided meditations online.

Another piece of maintaining mental health during finals week is taking breaks. Breaks are beneficial both for studying ability and mental health. Taking a break to do something enjoyable can decrease stress and keep a student’s mind in a good place.

Anyone experiencing high levels of anxiety can reach out to school counselors and see about making an appointment. Students may also benefit from talking about their stress with friends, family members, or professors. Leaning on a social support network during this stressful time may alleviate some of the nervousness that comes with finals week.

Lastly, students should ask for help if they need it. Most colleges have mental health services on campus.

4. Team Up

Students should remember that they’re not going through finals alone. They have a whole class of students struggling right alongside them. This can be a huge asset come finals week.

Instead of studying alone, students can form study groups.Study groups can help students be better prepared for finals. There may be some in the class who understand the material better and can teach it to others.

This helps both the student struggling and the student teaching. The struggling student gets new explanations for tricky material that may be easier to understand. The teaching student solidifies the material in their memory even more by explaining it to others.

Being in a study group can also help with accountability, so students are less likely to slack off and stop studying.

Those who need further support during finals week can visit their professors during office hours or consider getting a tutor. Professors want to see their students succeed, and though they can’t give answers to exam questions, they can help explain parts of the material that someone is struggling with.

No Pay, No Gain

Wait, so college students are paying to suffer through finals week? Technically, yes, because college costs money, of course, and even if the nightmare of finals week is still far off, it’s never too soon for students to start sorting out how they’re going to finance their entire college education.

There’s more than one resource available to students when it comes to funding college expenses. Here are a few, broken down in an easy-to-understand way.

Federal Aid

Students already in college might be familiar with the Free Application for Federal Student Aid, commonly known as the FAFSA.® Eligibility for undergraduates is usually based on parents’ income. Federal aid can come in the form of grants or loans. Grants usually don’t need to be repaid, but loans do.

Federal loans usually come with benefits that private loans don’t, such as income-driven repayments and lower fixed rates. It’s recommended that if students need to take out loans, they use federal loans before turning to private loans.

Is the FAFSA® one and done? Not at all. You must complete the application every year that you attend school if you hope to gain federal aid, and on time.

Free Money

The world of scholarships is vast. Though it can take some digging to find scholarships that students are eligible for, it’s money that usually doesn’t need to be repaid.

Scholarships can be need based or merit based, with the eligibility requirements different for each one. Scholarships come from colleges, corporations, local community organizations, religious organizations, and more.

Students might want to check if their college has any information available on scholarships. Usually, schools have a scholarship office or information about scholarships at their financial aid office.

Another Option

Private student loans are another way to help fund the college experience, when federal aid doesn’t cover all the bases, a student doesn’t qualify for federal aid, or someone has reached a limit on federal direct loans.

The eligibility for private student loans is usually based on a student’s income and credit history, or that of a cosigner. Each lender will have its own terms, including the interest rate and repayment methods, which merit research.

SoFi offers private student loans with attractive fixed or variable rates, no fees, and a quick online application.

See if you prequalify with SoFi in just two minutes.

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.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Source: sofi.com

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If you live in Florida — or are thinking of relocating — the Sunshine State has several prestigious colleges and universities, including Embry-Riddle Aeronautical University, the University of Florida and Rollins College.

Higher education is less expensive in Florida than in most other states. The state also operates several robust financial aid programs, such as the Bright Futures scholarship program, that can make college more affordable for residents.

The cost of education in Florida

Florida’s education system includes 40 public colleges and universities. There are also at least 30 private, non-profit schools throughout the state.

Generally, a college education in Florida is cheaper than the national average. Here’s how much you can expect each year of your degree to cost at different types of institutions, based on 2020-21 average tuition rates as reported by the National Center for Education Statistics:

  • Public four-year, in-state: Nationally, the average cost of a public, in-state university was $21,337 per year. In Florida, the cost was $15,543 per year — a difference of almost $6,000. 

  • Private non-profit: Private colleges and universities are usually more expensive than public schools. The average cost of a year at a private school in Florida was $28,860, about $4,500 less than the national average.  

  • Community college: The average cost of attending a two-year school was $3,501 per year at the national level. In Florida, the average cost was $2,506 per year, nearly $1,000 less. 

Financial aid options in Florida

To qualify for state-based financial aid, you must establish residency. For the purposes of in-state tuition rates and other state aid, you or your parents must live in Florida for at least 12 consecutive months before the first day of the term.

Currently, undocumented and Deferred Action for Childhood Arrivals (DACA) students can qualify for in-state tuition rates at Florida public colleges and universities if they meet the following criteria:

  • Attend a secondary school in Florida for at least three consecutive years before graduating.

  • Enroll in a Florida postsecondary institution within 24 months of graduating from high school.

  • Submit an official Florida high school transcript as evidence of attendance and completion.

However, the 2014 law that allowed those students to qualify for in-state tuition is facing challenges. Current Florida Governor Ron DeSantis has proposed repealing the measure, so this benefit may not be available in the future.

If you are a Florida resident, you may qualify for one or more of the following financial aid programs:

  • 529 plans.

  • In-state tuition.

  • Scholarships.

  • Student loan repayment assistance.

Florida 529 plans

529 plans are tools to save for a child’s future education. In Florida, there are two programs:

  • Prepaid tuition plan: Florida Prepaid College Plans allow you to purchase college credits for future use at today’s prices. The credits can be used in-state or out, and the child can attend public or private schools. The funds are available for up to 10 years after the child’s projected high school graduation date, and plans start at $45 per month. There’s also a $50 application fee. 

  • 529 college savings plan: The Florida 529 Savings Plan is an investment account you can use to save for a child’s education. You can choose from a range of investment options to grow your contributions tax-free as long as you use the money to pay for eligible education expenses.  

While some states offer special benefits, such as state account contributions or tax credits, Florida does not provide the same incentives or benefits.

Florida in-state tuition

Florida participates in the Academic Common Market. This network allows resident students to attend school in other states and pay in-state tuition rates. Through the network, students can qualify for in-state tuition at eligible programs in the following states:

  • Louisiana.

  • Mississippi.

  • South Carolina.

  • Tennessee.

  • West Virginia.

Not all schools or programs qualify, so talk to your selected school’s financial aid office to find out if you’re eligible for in-state rates.

Florida grants

Grants, as a form of gift aid, don’t need to be repaid, and they’re typically awarded based on financial need. Florida has three state grant programs:

First Generation Matching Grant Program

The First Generation Matching Grant Program is for Florida undergraduate students with substantial financial need and whose parents did not earn a college degree. Award amounts vary by year and the needs of the student.

Florida Student Assistance Grant Program

José Martí Scholarship Challenge Grant Fund

Florida scholarships

Students from Florida may qualify for one of nine scholarships.

Bright Futures Scholarship Program

Florida’s best-known and most valuable scholarship is the Bright Futures Scholarship Program. Through Bright Futures, students can qualify for an award for as much as 100% of college tuition and fees.

To qualify, students must be Florida residents, earn a Florida high school diploma or its equivalent, and maintain a GPA of 3.0 or higher in high school. Students must also complete volunteer service or paid work hours to qualify for the Bright Futures program.

Benacquisto Scholarship Program

The Benacquisto Scholarship Program is a merit-based award for high school graduates who achieved National Merit Scholar status. The award amount varies, but it can cover the total cost of attendance at participating schools, minus other financial aid.

Florida Farmworker Student Scholarship Program

The Florida Farmworker Student Scholarship Program is both merit-based and need-based. Each year, up to 50 eligible students can qualify for financial assistance that covers up to 100% of the credit hours required for degree or certificate programs. To qualify for the scholarship, students must be farmworkers or the children of farmworkers.

Mary McLeod Bethune Scholarship

As a merit- and need-based scholarship, the Mary McLeod Bethune Scholarship provides up to $3,000 in financial aid to academically strong students with financial need. To qualify, students must have a 3.0 GPA or higher and enroll at Bethune-Cookman University, Edward Waters College, Florida A&M University or Florida Memorial University.

Minority Teacher Education Scholars program

Administered by the Florida Fund for Minority Teachers, the Minority Teacher Education Scholars program is a performance-based scholarship for African American, Hispanic American, Asian American and Native American students. Eligible students can receive up to $4,000 per year in financial assistance.

Randolph Bracy Ocoee Scholarship Program

Students who are direct descendants of the victims of the Ocoee Election Day Riots of November 1920 or are current African American residents of Ocoee are eligible for the Randolph Bracy Ocoee Scholarship Program. Eligible students will receive up to $6,100 per year in financial aid.

Rosewood Family Scholarship

The Rosewood Massacre occurred in 1923. Students who are direct descendants of Rosewood families affected by those events can qualify for the Rosewood Family Scholarship. Qualifying students will receive up to $6,100.

Scholarships for Children and Spouses of Deceased or Disabled Veterans

This award is for the children or spouses of deceased or disabled military veterans who were Florida residents. Eligible students can receive funding for up to 110% of the required credit hours for an initial baccalaureate degree or certificate program.

William L. Boyd, IV Effective Access to Student Education Program

Student loan repayment programs in Florida

If you have student loans and live and work in Florida, you may be eligible for help from the state in repaying your loans. Florida has programs for attorneys and health care workers who will repay a portion of your debt if you complete a service obligation in a high-need area. The following loan repayment assistance programs (LRAPs) are available:

Florida Bar Foundation

The Florida Bar Foundation designed its LRAP to encourage attorneys to work for legal aid organizations. Under the terms of the LRAP, eligible lawyers can receive up to $5,000 per calendar year to repay federal or private student loans.

Florida John R. Justice

Florida’s John R. Justice LRAP provides repayment benefits to state and federal public defenders and state prosecutors who commit to remaining as defenders or prosecutors for at least three years. Participants in the program can receive up to $10,000 in loan repayment assistance per year, up to a maximum of $60,000. This program will only repay federal student loans; borrowers with private student loans aren’t eligible.

Florida Reimbursement Assistance for Medical Education program

The goal of the FRAME program is to recruit and retain medical professionals to practice in underserved areas. Through the program, nurses, physicians and physician assistants can receive assistance with their student loans. Award amounts vary by profession, but eligible borrowers can receive up to $20,000 per year in student loan repayment benefits. Federal and private student loans can be repaid through FRAME.

Nursing Student Loan Forgiveness Program

The Nursing Student Loan Forgiveness Program provides up to $4,000 annually in loan forgiveness to nurses working full time at a designated site. Examples include public schools, state-operated medical and health care facilities, and county health departments.

Nurses can participate in the program for up to four years. The program will repay federal and private student loans.

How to apply for financial aid in Florida

Florida has several financial aid programs, including gift aid in the form of grants and scholarships. To ensure you get all of the aid you’re eligible for, follow these steps:

  • Fill out the FAFSA: Need-based programs will determine your financial need based on the information that you submit with the Free Application for Federal Student Aid (FAFSA). The FAFSA can take less than an hour to complete. Fill it out online at FAFSA.gov. 

  • Look up deadlines: Although Florida’s FAFSA deadline is in mid-May, some scholarship or grant programs may have different deadlines and requirements. Review the application materials of each program carefully, and make a note of any deadlines. 

  • Create an account with Florida’s Office of Student Financial Assistance: Some of Florida’s programs require you to have a student account with the Office of Student Financial Assistance. It’s free to create an account, and you can open one at FloridaStudentFinancialAidSG.org. 

  • Fill out the Florida Financial Aid Application: Some grant and scholarship programs require the Florida Financial Aid Application as well as the FAFSA. You must have a student account with the Office of Student Financial Assistance. Once your account is created, you can access and fill out the application. 

Apply for specific programs: Some programs, such as the Benacquisto Scholarship Program or the Minority Teacher Education Scholars program, require separate applications or additional materials. Review each program’s eligibility requirements online so you can fulfill the application requirements.

Frequently asked questions

Is Florida Bright Futures based on income?

No, Bright Futures scholarships are not awarded based on your family’s income. In fact, the FAFSA isn’t required at all. Eligibility is determined by your residency, grades, standardized test scores, and volunteer or paid work hours.

Are undocumented or DACA students eligible for Florida in-state tuition?

Currently, undocumented and DACA students are eligible for in-state tuition rates under Florida House Bill (H.B.) 851, which was passed into law in 2014.

Can Florida residents get help completing the FAFSA?

Yes. Visit the Florida College Access Network for free resources, including detailed videos and tutorials, that can help you fill out the required forms to get the maximum amount of financial aid possible.

What is the FAFSA deadline for Florida?

Florida’s FAFSA deadline for the 2023–24 academic year was May 15, 2023. The application typically opens to students on Oct. 1 each year, so it’s a good idea to fill it out as soon as possible. If you missed this deadline, you can still complete the FAFSA for federal aid through Jun. 30, 2024.

Source: nerdwallet.com

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As of the end of 2022, nearly 45 million Americans collectively have over $1.7 trillion in student loan debt, and these numbers are growing. If you are one of the millions with some form of student debt, you may have considered student loan consolidation, which allows you to combine all of your student loans into one loan with one monthly payment.

Student Loan Consolidation Explained

Student loan consolidation is designed to combine some or all of your student loans and make repayment more manageable. There are both federal and private options when it comes to consolidating your student loans.

Private Student Loan Consolidation

A private student loan consolidation is when a lender pays off all or some of your student loan debt and creates a new loan, which you will then make payments on. If you consolidate or refinance through a private lender, the new loan will ideally have a lower interest rate and better terms than your previous student loans. With a private lender, you can consolidate both federal and private loans, and this is typically referred to as a student loan refinance.

Consolidating through a private lender, though, means you lose access to federal forgiveness programs, such as income-driven repayment plans. If you plan on using one of these programs now or at some point in the future, it’s best to hold off on consolidating through a private lender.

Federal Student Loan Consolidation

If you are hoping to consolidate federal loans only and want to keep access to federal forgiveness programs, you can consolidate with a Direct Consolidation Loan through the U.S. Department of Education.

Recommended: Types of Federal Student Loans

Consolidating through the federal student loan system doesn’t usually save you money; it simply combines multiple loans into one. Your new interest rate is a weighted average of all your loans’ interest rates, rounded up to the nearest eighth of a percentage point. No application fees are charged for Direct Consolidation Loans, and the loans remain federal loans.

This could be particularly useful for borrowers who are pursuing federal loan forgiveness or who are enrolled in one of the more flexible federal student loan repayment plans, such as an income-driven repayment plan.

As you ask yourself, Should I consolidate my federal student loans? And when should I consolidate my student loans? The answers depend on a number of factors.

Benefits of Consolidating Student Loans

There are a few reasons to consider student loan consolidation either with a Direct Consolidation Loan or refinancing through a private lender.

Simplified Repayment

Whether you choose a Direct Consolidation Loan or choose to refinance through a private lender, your loan repayment should be simplified. Managing multiple student loan payments may increase your chances of missing a payment. If you miss even one payment, you risk your credit score being lowered. Late payments also stay on your credit profile for up to seven years.

Thus, consolidating multiple loans into one can help eliminate the margin of error and may make repayment more manageable.

Fixed Interest Rate

When an applicant is interested in refinancing through a private lender, their interest rate and terms will be based on their credit score, payment history, type of loan they’re seeking, and other financial factors. While requirements may vary by lender, applicants who meet or exceed the lender’s criteria may qualify for better interest rates and terms, thus saving money over the life of the loan. Borrowers can also switch from a variable to a fixed interest rate when refinancing through a private lender.

With federal Direct Loan Consolidation, as mentioned earlier, a borrower’s interest rate is a weighted average of current loan rates rounded up to the nearest one-eighth of a percentage point, which means this doesn’t typically result in savings for the borrower. The borrower does, however, keep their access to federal loan forgiveness programs.

Federal and Private Loans May Qualify

Both federal and private student loans can be refinanced. For a borrower who exclusively has federal loans, a Direct Consolidation Loan may work best, especially for those who plan to take advantage of federal forgiveness or repayment programs. Those who have a combination of federal and private loans can partner with a private lender to refinance.

Flexible Loan Terms

Student loan consolidation allows you to change the duration of your loan. You may currently have a 10-year repayment plan, but when you consolidate or refinance, you might choose to shorten or lengthen the term of your loan. Typically, lengthening the term of your loan will reduce your monthly student loan payment (but add up to more total interest).

Considerations for Student Loan Consolidation

Even though there are benefits of student loan consolidation, there are also drawbacks. Here are a few considerations to be aware of before consolidating student loans.

You Can’t Lower Interest Rates on Federal Student Loans When Consolidating

If you choose the Direct Consolidation Loan, generally you won’t see any savings. Because your new interest rate is a weighted average of your current loans rounded up to the nearest one-eighth of a percentage point, you will probably pay around the same amount you would have paid if you didn’t consolidate. You are, however, condensing multiple monthly payments into one more manageable payment.

If you extend your term, you may see your monthly payment decrease, but your total interest payments will increase.

On the other hand, if borrowers choose to refinance with a private lender, they could end up reducing their interest, thus saving money over the term of the loan. They could also opt to lower monthly payments by extending their term. But as mentioned above, this increases the total amount of interest paid.

Possible Disqualification from Federal Repayment Programs

Refinancing federal student loans with a private lender disqualifies you from federal repayment programs, including the Public Service Loan Forgiveness Program (PSLF) and income-driven repayment plans.

Borrowers will also be disqualified from federal benefits such as forbearance and deferment options, which allow qualifying borrowers to pause payments in the event of financial hardship.

Some private lenders have hardship programs in place, but policies are determined by individual lenders.

Fees May Be Charged With Private Lenders

While there is no application fee for the federal Direct Consolidation Loan, private lenders may charge a fee to refinance loans. Fees associated with refinancing student loans are determined by the lender.

Refinancing vs Consolidating

Consolidating or refinancing student loans are terms that are thrown around interchangeably, but they are actually two different types of loans. A federal student loan consolidation is when you combine federal loans only through a Direct Consolidation Loan. This is done by the U.S. Department of Education only. A student loan refinance, on the other hand, allows you to combine both federal and private loans into one new loan and is done by a private lender. Below are some differences and similarities between refinancing vs. consolidating student loans.

Student Loan Refinancing vs Consolidating
Refinance Consolidation
Combines multiple loans into one Combines multiple loans into one
Can refinance federal and private loans Can consolidate federal loans only
Private refinance lenders may charge a fee No fees charged
Credit check required No credit check
Interest rate could be lowered Interest rate is a weighted average of prior loan rates, rounded up to nearest one-eighth of a percent
Term can be lengthened or shortened Term can be lengthened or shortened
Can no longer qualify for federal forgiveness or repayment programs Remain eligible for federal forgiveness and repayment programs
Saves money if interest rate is lowered Typically not a money-saving option

Refinancing Student Loans With SoFi

Understanding student loan consolidation and refinance options can help in making an informed decision about repaying student loans.

Borrowers interested in refinancing student loans might want to consider evaluating a few options, because requirements — as well as interest rates and loan terms — can vary from lender to lender.

Refinancing student loans with SoFi comes with no origination fees or prepayment penalties. SoFi offers competitive rates, flexible terms, and an easy online application that can be completed in just a few minutes.

Prequalify for a refinance loan today.

FAQ

Can your student loans still be forgiven if you consolidate them?

Possibly. If you consolidate your federal student loans with a Direct Loan Consolidation, you are still eligible for federal loan forgiveness programs. If, however, you choose to consolidate your loans through a private lender, you will no longer be eligible for federal programs.

When is consolidating student loans worth it?

Consolidating student loans is worth it if you’re looking to combine multiple student loan payments into one or you’re looking to lower your interest rate. You can use a Direct Consolidation Loan for your federal loans and keep access to federal benefits, or you can refinance through a private lender. Refinancing through a private lender could give you a lower interest rate and lower monthly payment, but you do lose access to federal forgiveness programs.

What are some advantages of consolidating student loans?

Advantages to consolidating student loans include combining multiple loans into one loan with one monthly payment, possibly accessing a lower interest rate, switching your rate from variable to fixed, and possibly extending your loan term to reduce your monthly payment.

SoFi Student Loan Refinance
If you are looking to refinance federal student loans, please be aware that the White House has announced up to $20,000 of student loan forgiveness for Pell Grant recipients and $10,000 for qualifying borrowers whose student loans are federally held. Additionally, the federal student loan payment pause and interest holiday has been extended beyond December 31, 2022. Please carefully consider these changes before refinancing federally held loans with SoFi, since the amount or portion of your federal student debt that you refinance will no longer qualify for the federal loan payment suspension, interest waiver, or any other current or future benefits applicable to federal loans. If you qualify for federal student loan forgiveness and still wish to refinance, leave unrefinanced the amount you expect to be forgiven to receive your federal benefit.

CLICK HERE for more information.

Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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Source: sofi.com

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The Department of Education has proposed new regulations to protect students enrolled in for-profit institutions and certificate programs from being saddled with debt they can’t afford to repay. The public has until June 20 to comment on the proposal.

“We cannot turn a blind eye to the college programs that are leaving students with mountains of unaffordable debts,” said Undersecretary of Education James Kvaal in a press release from May 17.

According to Kvaal, for-profit and career colleges are at the center of the problem, and the latest proposals offer the strongest protection yet for students and others involved against what he called “low value, debt-fueled colleges.”

These provisions would put metrics in place for institutions that fall under “gainful employment” regulations — targeted primarily at nondegree programs or any for-profit educational program — to decrease the number of students left with excessive debt compared to earnings. Low-performing institutions could lose access to federal financial aid.

“These programs disproportionately target many of the lowest-income students, in many cases leaving them financially worse off than if they never attended,” Becky Pringle, president of the National Education Association, a nonprofit organization of public education advocates, said in an email response.

The proposal also aims to increase the transparency of out-of-pocket costs and student outcomes for all educational institutions (public, private and for-profit) by collecting and publicizing more detailed college-level data. This is especially noteworthy, Pringle said, as it’s the first time students and their families will have access to this program-level data, empowering their decision making.

Cost of attendance, nonfederal aid and average debt and earnings are just a few data points that could be collected. Students would have to acknowledge this information before receiving federal financial aid from colleges not meeting the standards.

According to the Department of Education, proposed changes could affect nearly 1,800 underperforming programs, impacting over 700,000 students. Here are the proposal details.

Programs must achieve metrics to access federal financial aid

For-profit institutions and public or private nondegree programs are required to adequately prepare students for gainful employment to access federal financial aid, according to the Higher Education Act.

To hold programs accountable, the Department of Education will require institutions to meet performance standards in two areas:

Debt to earnings. The share of a graduate’s annual income needed to make their student debt payments cannot exceed 8%. For graduates on income-based repayment plans, their debt-to-earnings ratio must be less than 20% of their discretionary income — defined as income above the 150% federal poverty guideline.

Earnings compared to high school graduates. An institution must have at least half of its graduates earning more than the typical high school graduate with no postsecondary education. Graduate income is compared to the labor force of the college’s state.

Failing one metric would force the institution to alert students that the program may lose access to federal aid. If a program fails to achieve both metrics twice within three years, the program will completely lose access to federal aid.

Public access to more detailed college-level data

The department is also pushing for greater consistency in reporting the cost and return of postsecondary education. By collecting more detailed data on the cost of attendance, potential earnings and typical debt, the federal government wants to help students and families avoid impossible debt burdens.

New data collected could include the following:

  • Cost of tuition, fees, books and supplies.

  • Licensing requirements and exam passage rates (if applicable).

  • Nonfederal aid amounts per student.

  • Amount borrowed — for federal and private loans — per student.

  • Earnings per student.

Information will be made public on a department-run website, requiring students to acknowledge they’ve reviewed the data points before they can receive loans for a program that does not meet federal standards.

These metrics will also feed a “watch list” of institutions that leave students with high debt and poor earnings.

Additional provisions

Proposed regulations also include changes to other government-defined regulatory areas that will better equip the agency to hold institutions accountable — both proactively and once standards have not been met. They are:

Financial responsibility. Institutions would report behavior that could indicate a higher risk of closing suddenly — such as failing to make debt payments for more than 90 days. Certain financial triggers could lead to the Department of Education requiring a letter of credit from the institution to guarantee payment.

Administrative capability. There would be greater requirements for college administration programs, like career services and financial aid offices. Proposals would also include preventing administrators with previous misconduct around federal financial aid programs from being hired.

Certification procedures. The Department of Education would like to be able to more easily adjust its agreements with institutions receiving federal financial aid.

The regulations would also make adjustments to Ability to Benefit — a provision of the Higher Education Act allowing students without a high school diploma to have access to federal financial aid.

This proposed rule is currently open for public comment. Submit comments at Regulations.gov before June 20.

The Education Department expects to finalize the rule by the end of 2023. Rules finalized by Nov. 1, 2023, will go into effect on July 1, 2024.

Source: nerdwallet.com

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Shortly after graduating from New York University with a Master’s degree, Melanie Lockert turned to food stamps, as she worked her way out of $81,000 in student loans.

“There were a lot of emotions around carrying that debt. It caused a lot of stress and depression and anxiety for a long time,” she shared with me recently during an interview on my podcast.

The student loan crisis in America has reached epidemic proportions. With households across the country carrying $1.26 trillion in student loans, it is the second largest category of debt following mortgage debt.

For the class of 2016, the average student loan balance is $37,172, up six percent from the previous year, according to a new analysis by student loan expert Mark Kantrowitz published in the Wall Street Journal.

If you’re struggling to make ends meet due to student loans or wondering how you’ll ever pay off the debt in a timely manner, here are some key steps to support you along the way.

Never Pay Late. Ever.

Whoever likes to call student loans “good debt,” has probably never faced a late payment. “Falling behind on payments can cause federal loans to enter default, triggering expensive fees and collections,” says Heather Jarvis, attorney and student loan expert.

If you miss several payments and are in default, federal loan borrowers may also seize your wages, tax refunds and possibly social security benefits. And you can only imagine how all this can damage your credit score. (Keep reading for advice on what to do if you’re already in default.)

To avoid ever paying late, sign up for automatic payments with your lender. Doing so could also earn you a reduced interest rate (usually 0.25%), which could save you hundreds of dollars, maybe more, over the life of your loan.

Extend the Term

Speaking of your loan’s life, extending the term from 10 to 15 or 20 years could provide you with some payment relief since when you extend the term, your monthly payments decrease.

Bear in mind that since your interest rate remains the same this strategy may mean you’ll end up paying more to pay off the loan over time.

One way to avoid paying too much more interest is to take advantage of the smaller monthly payments for only a window of time. As soon as your finances strengthen place more than the monthly minimum towards your balance to help you get out of debt closer to your original term. Be sure to place extra payments directly towards the principal to knock down the debt even faster.

Tap Government Assistance

If you have federal student loans you may qualify for Income-Based Repayment (IBR), a government program that helps qualifying borrowers cap loan payments to a percentage of income, typically 10% of their income. The program will also forgive any remaining student loan debt after 20 or 25 years of making payments.

The Department of Education also has a program called Public Service Loan Forgiveness (PSLF). If you work full-time for a “public service” employer such as not-for-profits, AmeriCorps or PeaceCorps, the military or a government agency, PLSF may forgive your remaining federal loan debt after 10 years of employment.

If You’re Already Behind…You Have Options

If you’re in default, Jay Fleischman, a student loan and bankruptcy attorney, says you may be able to consolidate your loans under the U.S. Department of Education’s Direct Consolidation Loan Program, which is free and does not depend on creditworthiness.  “You could also rehabilitate by making nine agreed-upon monthly payments over a 10-month period of time with the collector assigned to the account. Those payments may be adjusted based on your income, and payments can be as low as $5 per month,” he says.

For private student loan borrowers, “the situation is markedly different because there is no right to consolidate or rehabilitate unless the lender has a specific program to do so,” says Fleischman. Contact your loan servicer and learn about ways you may be able to reduce or eliminate payments until you get back on your feet, he says.

If your lender won’t budge, you may choose to remain in default until a settlement opportunity presents itself or until the statute of limitations for collection expires. As a last resort, you may also consider bankruptcy as a way to wipe out other debts and repay your student loans under court supervision. “Though bankruptcy may not wipe out your student loans except in limited circumstances, many people opt for bankruptcy as a way to get more control over the ways in which your loans get paid,” says Fleischman.

Tap Home Equity…With Caution

Homeowners may be eligible to use a home equity line of credit (HELOC) to pay off their remaining student loan balance. This allows them to pay off the student loan with the existing equity in their home and save money if the HELOC has a lower interest rate than the student loan.

There’s also a new program offered by online lender SoFi called the Student Loan Payoff ReFi that allows some homeowners to pay down student debt using their home’s equity.  SoFi refinances the total amount of your student loans and existing mortgage at a lower rate. Through that process your student loan balance is paid off directly to the loan provider.

To qualify, SoFi says borrowers need healthy credit scores (check your free credit score to verify you qualify), a debt-to-income ratio that’s 45% or less (calculate debt-to-income ratio to see if you fall under this number) and a loan-to-value ratio that’s 80% or less (meaning you can’t be underwater on your mortgage). You can calculate your debt-to-income ratio with Turbo, and

Just keep in mind that when paying off your student loans with home equity – be it through SoFi or another lender – if you default on the consolidated loan the lender has the right to use your home as collateral and foreclose on the property. It’s a serious risk if you don’t have enough in savings or stable income to help you get by during tough times.

Remember to Deduct It

Student loans are no fun, but paying them can yield lower taxes. Each year the IRS lets borrowers deduct up to $2,500 in student loan interest from their taxable income.

Maybe Your Employer Can Help?

A growing number of companies are helping employees squash their student loans as an added perk like a 401(k) and health care.

Gradifi is a Boston-based start-up that’s working with over 200 employers to set up its student loan pay down plan, including PriceWaterhouseCoopers.

It’s a trend that’s likely to grow over the years with more than 50 percent of student loan borrowers saying they would rather receive student loan benefits than heath care from their employer.

Start a Side Hustle

While it’s important to cut back on spending to make room for paying down debt, that move alone isn’t always enough. “Pinching pennies and cutting back is really useful as an initial strategy, but at some point, there’s only so much you can cut back,” says Lockert, whose now chronicled her debt payoff strategies in the book Dear Debt: A Story About Breaking Up With Debt.
Through a series of side hustles over the years, including housecleaning, event assisting and pet sitting, earning $10 to $50 per hour, Lockert managed to not only afford her living expenses, but also erase five figures worth of student loan debt.

Depending on your interests, you can find relatively easy gigs at sites like TaskRabbit, Tutor.com, GigWalk and Care.com.

Have a question for Farnoosh? You can submit your questions via Twitter @Farnoosh, Facebook or email at far[email protected] (please note “Mint Blog” in the subject line).

Farnoosh Torabi is America’s leading personal finance authority hooked on helping Americans live their richest, happiest lives. From her early days reporting for Money Magazine to now hosting a primetime series on CNBC and writing monthly for O, The Oprah Magazine, she’s become our favorite go-to money expert and friend.

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The Best States for Higher Education in 2018 – SmartAsset

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It’s hard to overstate the value of an education. According to Census Bureau data from 2016, the average worker with a bachelor’s degree earns $51,600 per year. That is roughly $22,000 more than the average worker with a high school diploma earns and $30,000 more than a worker without a high school diploma earns. But as everyone knows, getting an education can be expensive and is getting increasingly so. From 2006 to 2016, the cost of college tuition and fees increased by 63%, according to the Bureau of Labor Statistics.

Compounding that problem is the fact that many students take on massive amounts of student debt to pay for college, hindering their ability to save for retirement or buy a home. However, in some states, public colleges are still affordable and offer students excellent earning opportunities. Below we rank the best states for higher education.

In order to come up with our rankings we looked at five factors. Specifically, we compared the states across student-to-faculty ratio, average net price, undergraduate graduation rate, in-state attendance rate and the 20-year return on investment. Check out our data and methodology below to see where we got our data and how we put it together.

This is SmartAsset’s fourth annual study on the best states for a higher education. Read the 2017 study here.

Key Findings

  • Consistency – For the third year in a row, Virginia and California occupy the top two spots. Eight of last year’s top 10 also ranked in the top 10 this year.
  • Mixed bag – No one area dominates more than another. Some Northeast states, like New York and New Jersey, rank well, as do some Southern states like Virginia and North Carolina. California also gets an A grade while in the Midwest, Michigan secures a top 10 spot.

1. Virginia

This makes four years in a row in which Virginia was either the best or second-best state for higher education. Schools in this state have a graduation rate of 71%, or second-highest in our study, and offer their students great long-term value. Our data shows that schools in Virginia offer a 20-year average return on investment of $417,711, or fourth-most in the study.

Attending college in Virginia is on the more expensive side, this state ranks in the bottom 10 for average net price.

2. California

California once again secured a spot among the top two. This state ranked well in all but one of our metrics. Schools here have the second-highest 20-year return on investment and the fifth-lowest average net price.

However, for students who prefer an intimate class experience California may not have the best options. According to our data, California has a student-to-faculty ratio above 24, the highest in our study.

3. Wyoming

The Cowboy State takes third. This state ranks highly because of how many locals attend state colleges. Around 62% of high school graduates in Wyoming end up attending local 2-year or 4-year institutions. For that metric, Wyoming ranks 10th.

Wyoming schools also have low student-to-faculty ratios. Its student-to-faculty ratio is 14, fifth-best in our study. With some improvement in the graduation rate (currently 55%), Wyoming might be able to climb into one of the top two spots.

4. Iowa

No public colleges do a better job at graduating its students than Iowa. Overall, 72% of students in public colleges in Iowa graduate, the highest rate in our study. Students tend to do well once they graduate, as well. The 20-year return on investment for graduates of public schools in Iowa is $369,400, ninth most in the country.

5. North Carolina

Once again North Carolina scores well in in higher education. Not only does North Carolina score well in this study, but this state contains many of the best community colleges in the country.

On average, attending one of North Carolina’s public colleges is fairly affordable. The average net price for the 2015-2016 school year, according to The Integrated Postsecondary Education Data System, was $11,500. North Carolina ranks 12th in that metric. Most students who attend North Carolina public colleges graduate, according to our data. North Carolina public colleges and universities had an average graduation rate of just under 61%.

6. Connecticut

Connecticut ranked sixth this year, jumping half a dozen spots from last year. Public colleges and universities in this state have some of the lowest student-to-faculty ratios in the country. At 13.9 only three states have a lower student-to-faculty ratio than Connecticut. But perhaps more important is the graduation rate. Around 66% of students at public institutions in Connecticut graduate, the fourth-highest rate.

Connecticut’s score is hurt by the fact that most graduates of Connecticut high school decide to go out of state for their higher education.

The newfound money that many college graduates come into following their exodus from school can be daunting to manage. In turn, we’ve outlined the top financial advisor firms in Connecticut.

7. New Jersey

The Garden State takes the seventh spot. Public colleges and universities in New Jersey do a successful job graduating their students. Our data shows that the average New Jersey public institution has a graduation rate around 68%, the third-highest rate in our study.

New Jersey schools also have a low student-to-faculty ratio and a better than average 20-year return on investment.

8. Delaware

Delaware secured another top 10 spot in this study. This makes four years running where the Delaware state university system was rated in the top 10.

What makes attending Delaware state institutions so good for its students is the long-term value. According to our data, the average Delaware public college or university has a 20-year return on investment of $423,000. Combine that with Delaware having the seventh-lowest student-to-faculty ratio and it’s no surprise this state ranks so high.

9. New York

New York has some good all-around scores. The average public college or university has a student-to-faculty ratio of 15.7 and an average net price of just under $12,000. Both of those scores are in the top 20. New York has a graduation rate of 55% and 20-year return on investment of $356,000, also two scores which beat the majority of other states.

In fact the state only has a below-average score in one metric: percent of high school graduates who attend an in-state public college or university.

10. Michigan

Our list ends in the Great Lake State. Overall Michigan gets a B+. This state’s public institutions seem to be well-loved by its high school graduates. According to our data, around 62% of Michigan high school graduates went on to attend one of Michigan’s 2-year or 4-year public colleges. While Michigan had no top 10 scores it also had no below-average grades.

Data and Methodology

To find the best states for higher education, SmartAsset looked at data for the following five metrics:

  • Undergraduate graduation rate. Data comes from the Integrated Postsecondary Education Data System. Data is for the 2015-2016 school year.
  • Average net price. This metric considers the average yearly price for first-time, full-time undergraduate students. Data comes from the Integrated Postsecondary Education Data System and is for the 2015-2016 school year.
  • Student-faculty ratio. This metric also comes from the IPEDS data center. It’s from the 2016-2017 school year.
  • 20-year return on investment. This is the difference between 20 years of median pay for a graduate with a bachelor’s degree minus the costs for attending the higher education institution for four years and 24 years of median pay for a high school graduate. Data comes from Payscale.
  • In-state attendance rate. This is the percentage of students who graduated from high school in 2015 who went on to attend an in-state college. Data comes from the Integrated Postsecondary Education Data System and the Western Interstate Commission for Higher Education.

Data for metrics were found using a weighted average of the schools in each state.

We ranked each state in the five metrics. We then found each state’s average ranking, giving a double weighting to graduation rate. Using this average ranking we created our final score. Our score was graded on a curve with the top 15% of states getting an A and the bottom 15% getting an F.

Tips for Managing Student Debt

  • Deduct it from your taxes. While there was some talk of eliminating the student loan interest deduction the new Trump tax plan left it in place. This means you can deduct up to $2,500 in student loan interest payments from your taxable income.
  • Refinance. If you find yourself struggling to pay off your student debt, one option may be to refinance. If you refinance all your student loans it is possible to get access to lower rates or to extend the life of the loan to lower monthly costs.

Questions about our study? Contact us at [email protected]

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Derek Miller, CEPF®
Derek Miller is a graduate of the University of Edinburgh where he studied economics. He is passionate about using data to help people make better financial decisions. Derek is a Certified Educator in Personal Finance® (CEPF®) and a member of the Society for Advancing Business Editing and Writing. He is a data journalist whose expertise is in finding the stories within the numbers. Derek’s writing has been featured on Yahoo, AOL, and Huffington Post. He believes the biggest financial mistake people make is waiting too late to save for retirement and missing out on the wonders of compounding interest. Derek lives in Brooklyn.

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Source: smartasset.com