12 Steps to Filling out the FAFSA Form 2021-2022

For many people, one of the first steps to applying for college is filling out the Free Application for Federal Student Aid, or FAFSA®. This form helps the government determine your eligibility for federal student aid, including subsidized and unsubsidized student loans, as well as grants and work-study opportunities.

Completing The 2021-2022 FAFSA Application

The FAFSA form 2021 may look a bit different if you’ve filled out the form in the past. That’s because of the FAFSA® Simplification Act, which was passed in December 2020 and designed to make the FAFSA more accessible for lower-income students and families. While most of these changes won’t go into effect for the upcoming FAFSA cycle, we’ll point in this article a few changes to FAFSA you will see this year.

Recommended: FAFSA 101: How to Complete the FAFSA

12 Steps to Fill Out the FAFSA

FAFSA opens Oct. 1, 2020, and closes June 30, 2022 for the 2021/2022 academic year. However, FAFSA deadlines may vary depending on the states and schools you’re applying to, so you may want to check with each school to confirm their FAFSA deadline. If you’re ready to fill out FAFSA, we’ve outlined steps required in the process.

Not ready to fill out the FAFSA? You can fill out an abridged Federal Student Aid Estimator to give you an idea of what filling out the actual FAFSA will be like and to estimate your expected student aid package.

1. Required Documents Ready

Before even loading the online FAFSA form, it may be useful to have all your required documents in order to make the application process even easier. The things you’ll need may include:

•   Social security or alien registration ID

•   Drivers license or state ID

•   Federal income tax returns, W-2s and other financial documents for both yourself and your parent(s) if you’re a dependent (more on that later)

•   Bank statements

•   Untaxed income

•   Title IV Institution Codes for schools you’re applying to (again, more on that later)

•   Download app, if you plan on applying on mobile (you can also apply on desktop)

Dependent students will also need to provide similar information for their parents.

2. FSA IDs

There’s one more thing you’ll need in order to apply for FAFSA, and that’s a federal student aid ID, or FSA ID . This is simply the username or password you’ll use to log into FAFSA. Note that if you need to enter parental financial information, whoever is providing that financial information will also need to create an FSA ID .

3. Basic Information

Now that you have a FSA ID, you’re ready to log in and get started. The first few steps of FAFSA will be filling out basic information. The site or app will first ask you if you are a student, parent, or preparer helping a student fill out the FAFSA. Select which one applies to you. You should then be prompted to provide the following:

•   Your full name

•   Date of birth

•   Social security number

4. Starting the Application

Once you fill in this information, you will be asked to accept or decline the disclaimer, which details how the site will use and monitor your data. You should then be prompted to either start a FAFSA for 2021-2022 or 2020-2021. If you’re filing FAFSA for the upcoming year and are not currently enrolled in college, you should choose “Start 2021-2022 FAFSA.”

You’ll also be asked to create a save key, which is simply a four-digit code you’ll use to save your application. If you don’t finish FAFSA in one sitting, then you’ll be asked to enter your save key to continue filling it out at a later date.

5. Section 1: Student Information

Next, you’ll need to enter some information about yourself, including (but not limited to):

•   Social security number

•   Full name

•   Date of birth

•   Email address

•   Phone number

•   Home address

•   State of residence

•   Citizenship status

•   High school completion status

•   College degree level

•   If you’d like to be considered for work-study

6. Section 2: College Search Section

To send your FAFSA information to schools you’re applying to, you’ll need to find the federal school code for each school you want your information sent to. Doing so allows colleges to receive your FAFSA information and use it to provide you a financial aid package. You can find this code either on the school’s website or by searching for it on the FAFSA form itself.

7. Section 3: Dependency Status

You can either apply to FAFSA as a dependent of your parents or as an independent. If you’re a first-time college student and will graduate from high school in 2022 and/or are under 24 years old, you’ll most likely need to file as a dependent, meaning you’ll need your parents’ financial information to apply.

Section 3 of the FAFSA will help you determine if you’re an independent or dependent student. You’ll need to provide some more information about yourself, such as your marital status, if you have children or other dependents, and if you’re at risk or are currently experiencing homelessness.

Once you’ve filled out this information, FAFSA should display a message that determines whether or not you’re considered a dependent and therefore need parental financial information to determine expected family contribution (which will soon be replaced with the student aid index).

(Note that the rest of these steps assume you’re filing as a dependent. While the process of filing as an independent will be similar, you won’t be asked to provide information about your parents.)

8. Section 4: Parental Information

If you need parental information for FAFSA, you’ll include that in this section. Information you’ll need includes (but is not limited to):

•   Parental marital status

•   Date of parent’s marriage

•   Parent social security number

•   Parent name

•   Parent date of birth

•   Parent email address

•   Parent’s spousal information for all of the above

•   Household size

9. Section 5: Parent Financials

Next, you’ll need to provide some financial information about your parents. You’ll be asked for information such as (but not limited to):

•   Last year taxes were filed

•   Tax return type

•   Filing status

•   IRS Data Retrieval Tool (otherwise, need to fill in tax information manually)

•   Combat pay

•   Grant and scholarship aid

•   Education credits

•   Untaxed IRA distributions

•   IRA deductions and payments

•   Tax exempt interest income

•   Child support payments

•   Need-based employment programs

•   Net worth

10. Section 6: Student financials

Now it’s time to provide some financial information about yourself. You’ll be asked for information such as (but not limited to):

•   Last year taxes were filed

•   Tax return type

•   Filing status

•   IRS Data Retrieval Tool (otherwise, need to fill in tax information manually)

•   Combat pay

•   Grant and scholarship aid

•   Education credits

•   Untaxed IRA distributions

•   IRA deductions and payments

•   Tax exempt interest income

•   Child support payments

•   Need-based employment programs

•   Net worth

11. Check for errors

Once you’ve reached the end of the application, you should receive a FAFSA summary. Before hitting submit, you may want to ensure that all the information you included is accurate. Reviewing this information closely may help avoid filing a FAFSA correction later.

12. Agreement of Terms

The FAFSA requires you to accept or reject its agreement of terms. If your parent(s) also provided information because you filed as a dependent, they will also need to accept these terms in order for you to submit the application. Both you and your parent(s) will e-sign using your FSA ID. Once you’ve accepted the terms, your FAFSA will be complete.

Sample FAFSA Form for 2021/2022

Do you need some extra help? FAFSA’s Financial Aid Tool Kit is rich with resources and information. Some documents include step-by-step instructions on how to complete the FAFSA on the website and mobile app, lists of tips for filling out the FAFSA, question-and-answer documents, and more. You can also view a sample FAFSA form or a presentation on how to fill out FAFSA using the mobile app.

This student aid report may also be useful if you need to see another FAFSA sample form.

Recommended: How much FAFSA Money Can I Expect?

What’s Different About the 2021/2022 FAFSA

As previously discussed, the FAFSA Simplification Act passed last December resulted in a few changes to FAFSA. However, most of these changes won’t go into effect for the 2021-2022 school year. For FAFSA 2021-2022, major changes include the following:

•   Automatic-Zero EFC: FAFSA will give all applicants with an income of $27,000 or less an EFC of zero, meaning FAFSA does not expect families to help pay for the applicant’s college. This amount increased $1,000 from last year, which set the cut-off at $26,000, so more students should be able to receive a EFC of zero.

•   Schedule 1 Questions: When populating tax information from the IRS Data Retrieval Tool, the tool will automatically answer whether or not the applicant filed for a Schedule 1.

Additional changes are already scheduled for the 2022/2023 FAFSA form, such as drug convictions no longer negatively affecting one’s ability to get financial aid. Additionally, registration status for Selective Service for eligible males will also no longer be considered for financial aid. You can review the latest changes to the FAFSA on the official FAFSA website.

A Few Extra Tips

Completing the FAFSA can be an overwhelming process. For those filing for the first time, you may want to check out this 2021-2022 FAFSA guide and some FAFSA tips to make the process even easier. If you need some more help on how to fill out FAFSA 2021/2022, some tips from StudentAid.Gov include:

1.    Completing the form: It can be tempting to skip the FAFSA altogether, especially if you’re from a middle- or upper-class family and you believe you won’t be eligible for aid. However, falling for this assumption could mean leaving aid on the table.

2.    Paying attention to deadlines: As stated earlier, FAFSA 2021/2022 opens Oct. 1 and closes June 30, 2022. However, the schools you’re applying to may require you to fill out the FAFSA before June 30, so it’s best to ask each school’s financial aid office about what their FAFSA deadlines are to avoid losing out on aid.

3.    Using the IRS Data Retrieval Tool: This tool auto-fills your latest tax information from the IRS database. When you fill out FAFSA, you’ll have the option to either fill out your tax data manually or use the tool. Using the tool could help you avoid making costly mistakes while also saving you time.

4.    Filling out every section: Not sure how to fill out a section? FAFSA offers helpful tips throughout each section of the FAFSA form to make filling out the FAFSA easier. Additionally, not filling out a section of FAFSA could result in your form not being submitted or you receiving less financial aid.

5.    Double-checking the form: Before you submit, you may want to go back and double-check your answers to make sure everything is filled out and is accurate.

Recommended: Navigating Your Financial Aid Package

The Takeaway

Filling out the FAFSA is a great first step to pay for your dream school. This is one of the best ways of getting scholarships and grants you won’t have to pay back or government-backed loans to help you pay for college-related costs. By learning how to properly fill out the FAFSA (and then actually doing so!), you can increase your odds of getting a bigger financial aid package.

However, if your financial aid package doesn’t cover all your college expenses, you may want to consider private student loans. It’s important to note that private student loans don’t offer the same protections as federal student loans, like income-driven repayment plans or deferment options. For this reason, private student loans are generally considered only after other sources of funding have been considered.

SoFi’s Private Student Loans are available for undergraduate and graduate students, as well as parents. In just a few minutes, you can apply online for student loans and be well on your way to financing your education.

Find out more about SoFi’s Private Student Loan options.

Header photo credit: iStock/Vladimir Sukhachev

FAFSA photos credit: FAFSA’s Financial Aid Tool Kit


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Source: sofi.com

ESG Is Not ‘Ethical Investing.’ And That’s OK.

As enthusiasm about ESG investing has been on the rise, so too has controversy. ESG is an acronym that refers to the environmental, social and governance considerations relating to investing. It’s an approach that, by some estimates, may become integrated into half of all U.S. managed accounts by 2025.

Why should investors and companies care about ESG? The argument is that in the long run, those risks will impact the business — companies that consider these non-financial, yet material, metrics in their strategy are best poised to mitigate risk and succeed. The increasing frequency of extreme weather events, rising prices for oil and gas, and spiraling discontent among workers provide early evidence of how environmental and social concerns will impact investors.

Where ESG Draws Criticism

Criticism about ESG generally falls into two broad categories.  One view holds that ESG is systemic “greenwashing.” Companies publish glossy reports about their social and environmental engagement and hope that investors take interest or include them in sustainability indices. This view maintains that companies are rewarded for publishing a report that reveals some good practices, while ignoring the bad ones, and thus get a bump up in their third-party ESG ratings.

The second category of criticism is that if environmental and social challenges in business are so fundamental to long-term good management, and thus good financial performance, then the market will eventually price it into corporate valuations. This view believes that markets are efficient; it then follows that better social and environmental outcomes will prevail, if we keep the eye on the ball, which is financial performance.

A consistent assumption among the critics, however, is that ESG is designed to enable better ethical and social outcomes.  But that’s not necessarily the case — ESG is not the same as ethical, socially responsible or impact investing. And that’s OK, because we need all these strategies.

Impact investors seek measurable impacts on people, planet and profits with respect to how they allocate their money. A socially responsible or ethical investment strategy might seek to exclude from their funds companies that are deemed unethical. But an ESG strategy remains invested in the company, even if there are activities not aligned with their values, and will push for change.

For example, ESG investors might use their investment stewardship and proxy voting team to engage with the companies’ boards and CEOs about their plans to address climate risk, or even vote against the re-election of certain board members. The recent proxy battle victory by activist investor Engine No.1 at Exxon Mobil demonstrates this point (see my analysis here).

The Impact ESG Has on the Economy and Companies

Advocates for ESG investing indicate that their interest in climate and social factors stems from their view that poor management of those risks will impact financial portfolios and long-term business performance. The analytical focal point is impact on the economy and on the financial performance of companies, not the other way around.

Regulators also point to the risks that ESG considerations pose to the financial portfolios.  The Department of Labor, for instance, recently proposed rules that, if passed, would permit fiduciary investment managers to take ESG risks into consideration, namely because they “may have a direct relationship to the economic value of the plan’s investment.”  If there are any positive effects on people and the planet, it’s considered a “collateral benefit.”

The NY Department of Financial Services also provided guidance about climate change risks to the financial firms under its jurisdiction.  They indicated that financial firms, particularly insurance companies, should integrate into their governance and risk-management processes how various climate change scenarios are likely to impact their business

The frame of analysis, thus, is the impact on business and financial systems. The success of ESG depends on further expanding, measuring and defining the business case for ethics. This is one reason why making “the business case” for social challenges has become a feature of academic research and the business press (as I argue here, sometimes it goes too far).

Maintaining Principles Is a Key to Success

A principled ESG fund will therefore present investments that are at the intersection of financial performance and social or environmental good, so that investors can align their values with those opportunities. As Tariq Fancy describes in The Secret Diary of a Sustainable Investor, think of a Venn diagram where purpose and profit seek to intersect — that intersection constitutes the ESG integration approach for social and environmental good. 

For ESG to continue to grow and succeed, the intersection in that Venn diagram needs to expand. Financial firms, companies, rating agencies and other intermediaries need to collaborate to improve the consistency of data, the accuracy of marketing and continued standardizations in disclosures. 

To be sure, there is greenwashing in ESG, and some companies take advantage of sustainability reports by, for example, highlighting only marginal efforts around stakeholder engagement without any change in their core operations.  Governments and regulators should help define the space and provide oversight with respect to these practices.

We all need to speak, write and report more precisely around this topic. Conflating ESG, sustainability, impact and ethical investing can confuse the aims of adherents to each approach.  The longevity of the movement depends on it.

Executive Director, American College Center for Ethics in Financial Services

Azish Filabi, JD, is Executive Director of the American College Center for Ethics in Financial Services and an Associate Professor of Ethics at the American College of Financial Services. She joined The College in 2020. Before that, Filabi worked at BlackRock as Vice President for Investment Stewardship, where she was involved with topics such as executive compensation, board quality, diversity and composition, and disclosure of environmental and social risks.

Source: kiplinger.com

10 Tips to Help You Stay Cozy in Your Apartment this Winter

Enjoy cozy vibes in your apartment all winter long with these 10 tips.

With temperatures dropping quickly and the shortest days of the year approaching fast, many apartment renters are looking for ways to stay cozy and ride out the long winter in complete comfort.

Here are 10 simple tips that are sure to help you stay cozy in your apartment until spring returns.

1. Avoid the overheads

Overhead lights are great when you’re staying up late to get some extra work done or trying to find something small you dropped on the ground. What they’re not great for is setting a cozy mood. With the sun setting earlier than any other time throughout the year, you end up spending a solid portion of the winter months basking in unnatural light, regardless of how much natural light your apartment receives in the middle of a sunny day.

Make the most of these early sunsets and treat yourself to some warm and cozy mood lighting. Whether that takes the form of an ultra-modern floor lamp, a hand-me-down lava lamp from your pop’s college days or a Michael Scott-style St. Pauli Girl neon sign, all that matters is that it puts your mind at ease and amplifies your cozy vibe.

2. Light a candle…or five

candles to stay cozy in your apartment

candles to stay cozy in your apartment

For hundreds of years, fire has been the most effective way for people of all walks of life to find coziness in the toughest conditions. From our cave-dwelling ancestors sharing stories around the warm embrace of a communal fire to you and your cousins sitting at the base of the fireplace while grandpa relives the glory days aloud, fires have always been a go-to for cultivating coziness.

Given the fact that many apartments are not equipped with a fireplace, you’re going to have to get a bit creative here. Luckily for you, candles are in vogue and that means every Walmart, Target and CVS boasts an entire section of seasonally scented candles perfect for mellowing out your apartment and inviting those cozy feelings in.

Pro tip: Create your own makeshift fireplace by getting a set of five or so scentless candles. Place them together in a safe spot in your apartment, turn off the lights and stay cozy around your new “fireplace.”

3. Invest in sweats

When you’re getting down to business, you put on a suit. When your business is staying cozy in the winter, you put on a sweatsuit. As temperatures drop and the sun only shows its smiling face for a few precious hours a day, comfort takes the top priority over style. This is especially true if you’re part of the still-growing population of people spending their nine-to-five working from home. Stay home, stay suited and stay cozy.

4. Slide into a quality pair of slippers

Person with slippers staying cozy in apartment

Person with slippers staying cozy in apartment

If you’re already committed to spending a majority of your winter rocking a sweatsuit, slippers are the next logical step (pun very much intended). Less rigid than shoes, more comfortable than your coziest pair of socks, a quality pair of slippers is the final piece you need to achieve total head-to-toe comfort and maximize your overall coziness as winter rages on outside your windows.

5. Organize your closet

Now that you’ve got a cozy sweatsuit and quality slippers, it’s time to trim the fat in your closet by tossing the things you don’t wear.

Buckle up, this step to staying cozy is a three-parter.

Part 1: Remove summer clothes you didn’t wear this year

Go through your closet and set aside all of the warm-weather items you didn’t touch throughout this past spring and summer. Put those clothes in a garbage bag or cardboard box and set them aside for a few months.

Part 2: Remove winter clothes you didn’t wear last year

Go through your closet and set aside all of the cold-weather items you didn’t wear throughout the fall and haven’t touched a month or so into the winter. Add those clothes to your warm-weather collection from a few months ago.

Part 3: Donate these clothes

Donate those clothes and enjoy the cozy feeling that comes with helping those in need in your community. And, as an added bonus, you’re creating more space in your closet for the fashion trends of the future.

6. Get creative

arts and craft supplies

arts and craft supplies

The lighting is right and your sweats are plush. Now that you’re equipped with the things you need to stay cozy, it’s time to take the next step and do some activities that invoke that highly sought-after feeling of pure coziness.

One great way to leverage your creativity to create a more cozy environment is to fill your walls and shelves with your own creations. You don’t have to be a Picasso to display your own artistic creations throughout your apartment. Even if you’re not the most creative person, the whole point here is to pass the time, ignite your imagination and create a more cozy environment in your apartment through your own artistic endeavors.

Whether you’re painting something simple like a heart, learning the ancient art of origami or hopping in on a new trend like creating your own macrame wall hanging, the important thing is that you’re enjoying yourself and engaging your imagination to fend off the boredom that often accompanies cold winter days.

Pro tip: You don’t have to spend money to learn a new skill. Look at YouTube for simple tutorials designed to help you perfect your craft without asking you to spend a dime.

7. Embrace your inner iron chef

They call it comfort food for a reason: it provides comfort. Whether that dish takes the form of a hearty hot soup, an extra cheesy casserole or a downright delicious batch of fresh-baked chocolate chip cookies, comfort food is undoubtedly one of the keys to cultivating a cozy atmosphere all winter long.

For those living in smaller apartments, an added bonus to upping your kitchen productivity throughout the winter is that you get a little residual heat from your stovetop or oven circulating around the apartment.

8. Work out with your bodyweight

person doing yoga

person doing yoga

Even if you’re living in a 400-square-foot studio, you still have enough room for some bodyweight workouts. While this may seem like a counterproductive activity to staying cozy in your home, bodyweight workouts offer a few advantages that contribute to an overall cozy vibe.

Working out is one of the most reliable ways to activate your endorphins and improve your overall mood. So, if you find yourself feeling bogged down by a cold gray day, take 15 minutes or so to work through some pushups, squats and situps. You can do these three simple workouts in minimal space with no equipment required.

These workouts can act as a palette cleanser for your mood and provide you with a fresh mental start even if you’re at the beginning of a long day.

9. Find your emotional support show

All due respect to 1950’s Hollywood, but the golden age of TV is happening right now. With specialized streaming services opening doors to all types of entertainment, there has never been a better time than now to cozy up on your couch for a full day of pure binging bliss.

If you’re looking for something that will put you in a cozy mood the second it shows up on the screen, here are a couple of qualifiers you should keep in mind before you dive into a new show.

  • Find something that’s easy to follow. This kind of show will allow you to work on your creative endeavors, prep your favorite dish or knock out a quick bodyweight workout circuit without losing track of the narrative.
  • Find something with at least three seasons. You can feel the effects of winter well before and long after the official start and end dates of the season. Because of this, it’s important to pick a show with some staying power that has the ability to last you to the spring.

It doesn’t matter if you’re a Netflix fanatic, a Hulu loyalist or dedicated to Disney+, you’re sure to find something that will have you feeling cozy every time take a seat on the couch and pick up the remote.

10. Hit the books

books to stay cozy in your apartment

books to stay cozy in your apartment

There’s something primally pleasurable about cracking open a book and transporting your mind to an entirely new world. When temperatures drop, this joy rises even more. While it’s difficult to put down the remote and pick up a new book, taking some time to read is a truly effective way to keep your mind off the cold and keep the cozy vibes rolling. Don’t know what to read? Here are three book recommendations that pair perfectly with a winter day.

  • “My Year of Rest and Relaxation:” Ever wonder what it would be like to hibernate for a whole year? Author Otessa Moshfegh explores this idea in a wildly entertaining novel that is currently in development to become a movie starring Margot Robbie.
  • “Out There – The Wildest Stories from Outside Magazine:” It’s hard not to feel cozy when you’re sitting in a temperature-controlled apartment reading about some of the most harrowing adventures ever documented in the freezing wilderness. Simple as that.
  • “The Little Book of Hygge:” Defined as “the art of creating coziness,” Hygge is something that is only achieved through concentrated efforts. Written by Meik Wiking, the CEO of the Happiness Research Institute in Copenhagen, this book is the definitive guide to cultivating coziness from arguably the most qualified person on the planet to do so.

Not interested in the titles above? Take a trip to your local bookstore and ask around for recommendations or look around for an online book club that matches your style.

Start prepping and stay cozy all winter long

It doesn’t matter if you’re using light to set the mood, putting your kitchen to the test or escaping your surroundings through a great show or book, coziness is within reach no matter who you are, where you live and what your interests are.

Source: rent.com

Average Student Loan Debt by State in 2021

Student loan debt nationwide increased by 8.28% in 2020, the largest increase since 2013, according to the latest report from EducationData.org. That spike was most likely fueled by rising unemployment and 3.2 million new federal student loan borrowers.

Student loan debt is now the second highest consumer debt category in the country behind only housing debt . Nationwide, nearly 40% of college attendees report some type of educational debt, and 65% graduate with student debt, the report showed.

A recent report from EducationData.org details the average student loan debt per borrower (based on all student loan debt, not just that owed by undergraduate borrowers) in each state. Overall, residents of Washington, D.C., have the nation’s highest federal student loan debt at more than $55,000 per borrower when looking at the total student loan debt owed by individuals in the state. Of every state, North Dakota has the lowest average federal student loan debt, with residents there owing an average of just $29,446.

Student Loan Debt in Each State

Read on for an overview of what student loan debt looks like across the country according to EducationData.org . This data is reflective of all borrowers, not just undergraduate students.

Alabama

Average borrower debt: $37,348
Total student loan debt: $23.1 Billion
Everything you need to know about student loans & scholarships in Alabama

Alaska

Average borrower debt: $34,431
Total student loan debt: $2.3 Billion
Everything you need to know about student loans & scholarships in Alaska

Arizona

Average borrower debt: $35,454
Total student loan debt: $30.7 Billion
Everything you need to know about student loans & scholarships in Arizona

Arkansas

Average borrower debt: $33,525
Total student loan debt: $12.8 Billion
Everything you need to know about student loans & scholarships in Arkansas

California

Average borrower debt: $36,937
Total student loan debt: $142.7 Billion
Everything you need to know about student loans & scholarships in California

Colorado

Average borrower debt: $37,120
Total student loan debt: $28.2 Billion
Everything you need to know about student loans & scholarships in Colorado

Connecticut

Average borrower debt: $35,448
Total student loan debt: $17.1 Billion
Everything you need to know about student loans & scholarships in Connecticut

Delaware

Average borrower debt: $37,338
Total student loan debt: $4.6 Billion
Everything you need to know about student loans & scholarships in Delaware

District of Columbia

Average borrower debt: $55,077
Total student loan debt: $6.4 Billion

Florida

Average borrower debt: $38,481
Total student loan debt: $98.2 Billion
Everything you need to know about student loans & scholarships in Florida

Georgia

Average borrower debt: $41,843
Total student loan debt: $67.2 Billion
Everything you need to know about student loans & scholarships in Georgia

Hawaii

Average borrower debt: $36,575
Total student loan debt: $4.4 Billion
Everything you need to know about student loans & scholarships in Hawaii

Idaho

Average borrower debt: $33,100
Total student loan debt: $7.1 Billion
Everything you need to know about student loans & scholarships in Idaho

Illinois

Average borrower debt: $38,071
Total student loan debt: $61.1 Billion
Everything you need to know about student loans & scholarships in Illinois

Indiana

Average borrower debt: $33,106
Total student loan debt: $29.6 Billion
Everything you need to know about student loans & scholarships in Indiana

Iowa

Average borrower debt: $30,848
Total student loan debt: $13.2 Billion
Everything you need to know about student loans & scholarships in Iowa

Kansas

Average borrower debt: $33,130
Total student loan debt: $12.5 Billion
Everything you need to know about student loans & scholarships in Kansas

Kentucky

Average borrower debt: $33,023
Total student loan debt: $19.5 Billion
Everything you need to know about student loans & scholarships in Kentucky

Louisiana

Average borrower debt: $34,683
Total student loan debt: $22.1 Billion
Everything you need to know about student loans & scholarships in Louisiana

Maine

Average borrower debt: $33,352
Total student loan debt: $6.1 Billion
Everything you need to know about student loans & scholarships in Maine

Maryland

Average borrower debt: $43,219
Total student loan debt: $35.5 Billion
Everything you need to know about student loans & scholarships in Maryland

Massachusetts

Average borrower debt: $34,549
Total student loan debt: $30.4 Billion
Everything you need to know about student loans & scholarships in Massachusetts

Michigan

Average borrower debt: $36,295
Total student loan debt: $50.7 Billion
Everything you need to know about student loans & scholarships in Michigan

Minnesota

Average borrower debt: $33,822
Total student loan debt: $26.3 Billion
Everything you need to know about student loans & scholarships in Minnesota

Mississippi

Average borrower debt: $37,080
Total student loan debt: $16.0 Billion
Everything you need to know about student loans & scholarships in Mississippi

Missouri

Average borrower debt: $35,706
Total student loan debt: $29.3 Billion
Everything you need to know about student loans & scholarships in Missouri

Montana

Average borrower debt: $33,953
Total student loan debt: $4.2 Billion
Everything you need to know about student loans & scholarships in Montana

Nebraska

Average borrower debt: $32,138
Total student loan debt: $7.8 Billion
Everything you need to know about student loans & scholarships in Nebraska

Nevada

Average borrower debt: $33,863
Total student loan debt: $26.3 Billion
Everything you need to know about student loans & scholarships in Nevada

New Hampshire

Average borrower debt: $34,353
Total student loan debt: $6.4 Billion
Everything you need to know about student loans & scholarships in New Hampshire

New Jersey

Average borrower debt: $35,730
Total student loan debt: $41.7 Billion
Everything you need to know about student loans & scholarships in New Jersey

New Mexico

Average borrower debt: $34,237
Total student loan debt: $7.7 Billion
Everything you need to know about student loans & scholarships in New Mexico

New York

Average borrower debt: $38,107
Total student loan debt: $91.9 Billion
Everything you need to know about student loans & scholarships in New York

North Carolina

Average borrower debt: $37,861
Total student loan debt: $48.0 Billion
Everything you need to know about student loans & scholarships in North Carolina

North Dakota

Average borrower debt: $29,446
Total student loan debt: $2.5 Billion
Everything you need to know about student loans & scholarships in North Dakota

Ohio

Average borrower debt: $34,923
Total student loan debt: $61.8 Billion
Everything you need to know about student loans & scholarships in Ohio

Oklahoma

Average borrower debt: $31,832
Total student loan debt: $15.2 Billion
Everything you need to know about student loans & scholarships in Oklahoma

Oregon

Average borrower debt: $37,251
Total student loan debt: $20.0 Billion
Everything you need to know about student loans & scholarships in Oregon

Pennsylvania

Average borrower debt: $35,804
Total student loan debt: $63.9 Billion
Everything you need to know about student loans & scholarships in Pennsylvania

Rhode Island

Average borrower debt: $32,212
Total student loan debt: $4.5 Billion
Everything you need to know about student loans & scholarships in Rhode Island

South Carolina

Average borrower debt: $38,662
Total student loan debt: $27.5 Billion
Everything you need to know about student loans & scholarships in South Carolina

South Dakota

Average borrower debt: $31,858
Total student loan debt: $3.6 Billion
Everything you need to know about student loans & scholarships in South Dakota

Tennessee

Average borrower debt: $36,549
Total student loan debt: $30.8 Billion
Everything you need to know about student loans & scholarships in Tennessee

Texas

Average borrower debt: $33,123
Total student loan debt: $116.8 Billion
Everything you need to know about student loans & scholarships in Texas

Utah

Average borrower debt: $32,781
Total student loan debt: $9.9 Billion
Everything you need to know about student loans & scholarships in Utah

Vermont

Average borrower debt: $38,411
Total student loan debt: $2.9 Billion
Everything you need to know about student loans & scholarships in Vermont

Virginia

Average borrower debt: $39,472
Total student loan debt: $41.9 Billion
Everything you need to know about student loans & scholarships in Virginia

Washington

Average borrower debt: $35,521
Total student loan debt: $27.6 Billion
Everything you need to know about student loans & scholarships in Washington

West Virginia

Average borrower debt: $32,258
Total student loan debt: $7.2 Billion
Everything you need to know about student loans & scholarships in West Virginia

Wisconsin

Average borrower debt: $32,272
Total student loan debt: $23.1 Billion
Everything you need to know about student loans & scholarships in Wisconsin

Wyoming

Average borrower debt: $30,246
Total student loan debt: $1.6 Billion
Everything you need to know about student loans & scholarships in Wyoming

The Takeaway

The average amount of debt held by borrowers varies from state to state. The five states with the highest average amount of student loan debt per borrower are; Washington D.C., Maryland, Georgia, Virginia, and South Carolina. The five states with the lowest average of student loans per borrower are; South Dakota, Oklahoma, Iowa, Wyoming, and North Dakota. North Dakota is the only state where the average borrower owes less than $30,000.

For millions, student loans are a necessary part of paying for college. When federal aid and savings aren’t enough to pay for school, some borrowers turn to private student loans. While private lenders are not required to offer the same benefits or protections as federal student loans, they can be helpful for borrowers who have exhausted all other options and are looking to fill in gaps in funding. Student loans with SoFi have no hidden fees and borrowers are able to choose from four repayment plans.

Find out more about private student loans available from SoFi.

Photo credit: iStock/FangXiaNuo


SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.

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Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility 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.

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.
Third Party Brand Mentions: No brands or products 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.
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Source: sofi.com

Using In-School Deferment as a Student

Undergraduate and graduate students in school at least half-time can put off making federal student loan payments, and possibly private student loan payments, with in-school deferment. The catch? Interest usually accrues.

Loans are a fact of life for many students. In fact, a majority of them — about 70% — graduate with student loan debt.

While some students choose to start paying off their loans while they’re still in college, many take advantage of in-school deferment.

What Is In-School Deferment?

In-school deferment allows an undergraduate or graduate student, or parent borrower, to postpone making payments on:

•   Direct Loans, which include PLUS loans for graduate and professional students, or parents of dependent undergrads; subsidized and unsubsidized loans; and consolidation loans.

•   Perkins Loans

•   Federal Family Education Loan (FFEL) Program loans.

Parents with PLUS loans may qualify for deferment if their student is enrolled at least half-time at an eligible college or career school.

What about private student loans? Many lenders allow students to defer payments while they’re in school and for six months after graduation. Sallie Mae lets you defer payments for 48 months as long as you are enrolled at least half-time.

But each private lender has its own rules.

Recommended: How Does Student Loan Deferment in Grad School Work?

How In-School Deferment Works

Federal student loan borrowers in school at least half-time are to be automatically placed into in-school deferment. You should receive a notice from your loan servicer.

If your loans don’t go into automatic in-school deferment or you don’t receive a notice, get in touch with the financial aid office at your school. You may need to fill out an In-School Deferment Request .

If you have private student loans, it’s a good idea to reach out to your loan servicer to request in-school deferment. If you’re seeking a new private student loan, you can review the lender’s deferment rules.

Most federal student loans also have a six-month grace period after a student graduates, drops below half-time enrollment, or leaves school before payments must begin. This applies to graduate students with PLUS loans as well.

Parent borrowers who took out a PLUS loan can request a six-month deferment after their student graduates, leaves school, or drops below half-time enrollment.

Requirements for In-School Deferment

Students with federal student loans must be enrolled at least half-time in an eligible school, defined by the Federal Student Aid office as one that has been approved by the Department of Education to participate in federal student aid programs, even if the school does not participate in those programs.

That includes most accredited American colleges and universities and some institutions outside the United States.

In-school deferment is primarily for students with existing loans or those who are returning to school after time away.

The definition of “half-time” can be tricky. Make sure you understand the definition your school uses, as not all schools define half-time status the same way. It’s usually based on a certain number of hours and/or credits.

Do I Need to Pay Interest During In-School Deferment?

For federal student loans and many private student loans, no.

If you have a federal Direct Unsubsidized Loan, interest will accrue during the deferment and be added to the principal loan balance.

If you have a Direct Subsidized Loan or a Perkins Loan, the government pays the interest while you’re in school and during grace periods. That’s also true of the subsidized portion of a Direct Consolidation Loan.

Interest will almost always accrue on deferred private student loans.

Although postponement of payments takes the pressure off, the interest that you’re responsible for that accrues on any loan will be capitalized, or added to your balance, after deferments and grace periods. You’ll then be charged interest on the increased principal balance. Capitalization of the unpaid interest may also increase your monthly payment, depending on your repayment plan.

If you’re able to pay the interest before it capitalizes, that can help keep your total loan cost down.

Alternatives to In-School Deferment

There are different types of deferment aside from in-school deferment.

•   Economic Hardship Deferment. You may receive an economic hardship deferment for up to three years if you receive a means-tested benefit, such as welfare, you are serving in the Peace Corps, or you work full time but your earnings are below 150% of the poverty guideline for your state and family size.

•   Graduate Fellowship Deferment. If you are in an approved graduate fellowship program, you could be eligible for this deferment.

•   Military Service and Post-Active Duty Student Deferment. You could qualify for this deferment if you are on active duty military service in connection with a military operation, war, or a national emergency, or you have completed active duty service and any applicable grace period. The deferment will end once you are enrolled in school at least half-time, or 13 months after completion of active duty service and any grace period, whichever comes first.

•   Rehabilitation Training Deferment. This deferment is for students who are in an approved program that offers drug or alcohol, vocational, or mental health rehabilitation.

•   Unemployment Deferment. You can receive this deferment for up to three years if you receive unemployment benefits or you’re unable to find full-time employment.

For most deferments, you’ll need to provide your student loan servicer with documentation to show that you’re eligible.

Then there’s federal student loan forbearance, which temporarily suspends or reduces your principal monthly payments, but interest always continues to accrue.

Some private student loan lenders offer forbearance as well.

If your federal student loan type does not charge interest during deferment, that’s probably the way to go. If you’ve reached the maximum time for a deferment or your situation doesn’t fit the eligibility criteria, applying for forbearance is an option.

If your ability to afford your federal student loan payments is unlikely to change any time soon, you may want to consider an income-based repayment plan or student loan refinancing.

The goal of refinancing with a private lender is to change your rate or term. If you qualify, all loans can be refinanced into one new private loan. Playing with the numbers can be helpful.

Just know that if you refinance federal student loans, they will no longer be eligible for federal deferment or forbearance, loan forgiveness programs, or income-driven repayment.

Recommended: Student Loan Refinancing Calculator

The Takeaway

What is in-school deferment? It allows undergraduates and graduate students to buy time before student loan payments begin, but interest usually accrues and is added to the balance.

If trying to lower your student loan rates is something that’s of interest, look into refinancing with SoFi.

Students are eligible to refinance a parent’s PLUS loan along with their own student loans.

There are absolutely no fees.

It’s easy to check your rate.


We’ve Got You Covered


SoFi Student Loan Refinance
IF YOU ARE LOOKING TO REFINANCE FEDERAL STUDENT LOANS PLEASE BE AWARE OF RECENT LEGISLATIVE CHANGES THAT HAVE SUSPENDED ALL FEDERAL STUDENT LOAN PAYMENTS AND WAIVED INTEREST CHARGES ON FEDERALLY HELD LOANS UNTIL THE END OF JANUARY 2022 DUE TO COVID-19. PLEASE CAREFULLY CONSIDER THESE CHANGES BEFORE REFINANCING FEDERALLY HELD LOANS WITH SOFI, SINCE IN DOING SO YOU WILL NO LONGER QUALIFY FOR THE FEDERAL LOAN PAYMENT SUSPENSION, INTEREST WAIVER, OR ANY OTHER CURRENT OR FUTURE BENEFITS APPLICABLE TO FEDERAL LOANS. 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.

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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Source: sofi.com

What Can You Use Student Loans For?

To attend college these days, many students take out student loans. Otherwise, they wouldn’t be able to afford the hefty price tag of tuition and other expenses.

According to U.S. News & World Report, among the college graduates from the class of 2020 who took out student loans, the average amount borrowed was $29,927. In 2010, that number was $24,937 — a difference of about $5,000.

Student loans are meant to be used to pay for your education and related expenses so that you can earn a college degree. Even if you have access to student loan money, it doesn’t mean you should use it on general living expenses. By learning the answer to, “What can you use a student loan for?” you will make better use of your money and ensure you’re in a more stable financial situation post-graduation.

Recommended: I Didn’t Get Enough Financial Aid: Now What?

5 Things You Can Use Your Student Loans to Pay For

Here are five things you can spend your student loan funds on.

1. Your Tuition and Fees

Of course, the first thing your student loans are intended to cover is your college tuition and fees. The average college tuition and fees for a private institution in 2021-2022 is $38,185, while the average for a public, out-of-state school is $22,698 and $10,338 for a public, in-state institution.

2. Books and Supplies

Beyond tuition and fees, student loans can be used to purchase your textbooks and supplies, such as a laptop, notebooks and pens, and a backpack. Keep in mind that you may be able to save money by purchasing used textbooks online or at your campus bookstore. Hard copy textbooks cost, on average, between $80 and $150; you may be able to find used ones for a fraction of the price. Some students may find that renting textbooks may also be a cost-saving option.

Recommended: How to Pay for College Textbooks

3. Housing Costs

Your student loans can be used to pay for your housing costs, whether you live in a dormitory or off-campus. If you do live off-campus, you can also put your loans towards paying for related expenses like your utilities bill. Compare the costs of on-campus vs. off-campus housing, and consider getting a roommate to help you cover the costs of living off-campus.

4. Transportation

If you have a car on campus or you need to take public transportation to get to school, work, or your internships, then you can use your student loans to pay for those costs. Even if you have a car, you may want to consider leaving it at home when you go away to school, because gas, maintenance, and a parking pass could end up costing much more than using public transportation and your school’s shuttle, which should be free.

5. Food

What else can you use student loans for? Food would qualify as a valid expense, whether you’re cooking meals at home or you’ve signed up for a meal plan. This doesn’t mean you should eat out at fancy restaurants all the time just because the money is there. Instead, you could save by cooking at home, splitting food costs with a roommate, and asking if local establishments have discounts for college students.

Recommended: How to Get Out of Student Loan Debt: 6 Options

5 Things Your Student Loans Should Not Cover

Now that you know what student loans can be used for, you’re likely wondering what they should not be used for as well. Here are five expenses that cannot be covered with funds from your student loans.

1. Entertainment

While you love to do things like go to the movies and concerts and bowling, you should not use your student loans to pay for your entertainment. Your campus likely offers plenty of free and low-cost entertainment like sports games and movie nights, so pursue those opportunities instead.

2. A Vacation

College is draining, and you deserve a vacation from the stress every once in a while. However, if you can’t afford to go on spring break or another type of trip, then you should put it off at this time. It’s never a good idea to use your student loans to cover these expenses.

3. Gym Membership

You may have belonged to a gym at home before you went to college, and you still want to keep up your membership there. You can, as long as you don’t use your student loans to cover it. Many colleges and universities have a gym or fitness center on campus that is available to students and included in the cost of tuition.

4. A New Car

Even if you need a new car, student loans cannot be used to buy a new set of wheels. Consider taking public transportation instead of buying a modest used car when you save up enough money.

5. Extra Food Costs

While you and your roommates may love pizza, it’s not a good idea to use your student loan money to cover that cost. You also shouldn’t take your family out to eat or dine out too much with that borrowed money. Stick to eating at home or in the dining hall, and only going out to eat every once in a while with your own money.

Student Loan Spending Rules

The federal code that applies to the misuse of student loan money is clear. Any person who “knowingly and willfully” misapplied funds could face a fine or imprisonment.

Your student loan refund — what’s left after your scholarships, grants, and loans are applied toward tuition, campus housing, fees, and other direct charges — isn’t money that’s meant to be spent willy-nilly. It’s meant for education-related expenses.

The amount of financial aid a student receives is based largely on each academic institution’s calculated “cost of attendance,” which may include factors like your financial need and your Expected Family Contribution (EFC). Your cost of attendance minus your EFC generally helps determine how much need-based aid you’re eligible for. Eligibility for non-need-based financial aid is determined by subtracting all of the aid you’ve already received from your cost of attendance.

Starting for the 2024-2025 school year, the EFC will be replaced with the Student Aid Index (SAI). The SAI will work similarly to the EFC though there will be some important changes such as adjustments in Pell Grant eligibility.

Additionally, when you took out a student loan, you probably signed a promissory note that outlined what you’re supposed to be spending your loan money on. Those restrictions may vary depending on what kind of loan you received — federal or private, subsidized or unsubsidized. If the restrictions weren’t clear, it’s not a bad idea to ask your lender, “What can I use my student loan for?”

If you’re interested in adjusting loan terms or securing a new interest rate, you could consider refinancing your student loans with SoFi. Refinancing can allow qualifying borrowers to secure a lower interest rate or preferable terms, which could potentially save them money over the long run. Refinancing federal loans eliminates them from all federal borrower benefits and protections, inducing deferment options and the ability to pursue public service loan forgiveness, so it’s not the right choice for all borrowers.

The Takeaway

Student loans can be used to pay for qualifying educational expenses like tuition and fees, room and board, and supplies like books, pens, a laptop, and a backpack. Expenses like entertainment, vacations, cars, and fancy dinners cannot generally be paid for using student loans.

If you have student loans and are interested in securing a new — potentially lower — interest rate, consider refinancing.

There are no fees to refinance a student loan with SoFi and potential borrowers can find out if they pre-qualify, and at what rates, in just a few minutes.

Learn more about student loan refinancing with SoFi.


SoFi Student Loan Refinance
IF YOU ARE LOOKING TO REFINANCE FEDERAL STUDENT LOANS PLEASE BE AWARE OF RECENT LEGISLATIVE CHANGES THAT HAVE SUSPENDED ALL FEDERAL STUDENT LOAN PAYMENTS AND WAIVED INTEREST CHARGES ON FEDERALLY HELD LOANS UNTIL THE END OF JANUARY 2022 DUE TO COVID-19. PLEASE CAREFULLY CONSIDER THESE CHANGES BEFORE REFINANCING FEDERALLY HELD LOANS WITH SOFI, SINCE IN DOING SO YOU WILL NO LONGER QUALIFY FOR THE FEDERAL LOAN PAYMENT SUSPENSION, INTEREST WAIVER, OR ANY OTHER CURRENT OR FUTURE BENEFITS APPLICABLE TO FEDERAL LOANS. 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 Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. A hard credit pull, which may impact your credit score, is required if you apply for a SoFi product after being pre-qualified.
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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Source: sofi.com

How to Become a Mortician and Other Jobs in the Funeral Industry

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There are a lot of reasons for thinking about becoming a funeral director, the funeral industry’s preferred term for mortician.

For one, the unemployment rate is low. For another, there’s always a need.

And, it is one of the careers that does not require a bachelor’s degree that still pays well. Funeral directors make an average of $55,000 a year. That’s the average and some directors with more experience bring in more than $70,000. As far as school, most states require an associate’s degree, an apprenticeship/internship, and passing a licensing exam.

If working with bereaved families and preparing bodies for burial or cremation seem like something you would be good at, consider this well-paying career path. The funeral industry is estimated to be worth $16 billion in the United States in 2021.

Read on to find out how to become a mortician.

The Difference Between a Mortician and Funeral Director

First, let’s clarify some terms. What are the differences between mortician, funeral director, embalmer and undertaker? They have similar roles but slightly different duties.

In 1895, an American publication called The Embalmer’s Monthly put out a call for a new term for undertakers. The winner was mortician, a made-up word and thank goodness for Morticia Addams, right? Now, the industry uses funeral director for the person arranging the funeral service.

Most funeral directors are licensed morticians and embalmers. They have studied mortuary science and prepare bodies, but they also arrange the other aspects of funeral services. Funeral directors help the bereaved plan the memorial service (and might conduct it if there is no clergy) and arrange for cremation and burial. Funeral directors deal directly with the clients.

An embalmer can work for a funeral home, but also elsewhere — medical schools, hospitals, and morgues. They mainly prepare bodies, and don’t work with clients. The term undertaker is the British term for funeral director and is seldom used in the U.S. except when referring to the popular professional wrestler, The Undertaker.

What Does a Funeral Director Do?

Funeral directors deal with both the living and the dead. Funeral directors arrange for moving the body to the funeral home. They file the paperwork for death certificates, obituaries, and other legal matters.

Preparing a body for the funeral service may or may not include embalming (cremation doesn’t require embalming), but it needs to be dressed, cosseted (put in the best and most natural appearance), and casketed (placed in the coffin).

Funeral services are difficult times for people. The funeral director needs to have compassion for people navigating their pain and sorrow. While an interest in science is necessary, an important quality for someone who wants to become a mortician or funeral director is empathy.

The funeral director guides the grieving through the decisions that have to be made for the funeral service. This not only includes choosing the coffin, but placing the obituary, arranging the wake and service and creating a program for it, shipping remains, and more.

The Changing Funeral Business

Most funeral homes are independently owned. While often smaller businesses don’t have the deeper pockets of corporations, their size allows them to be more nimble in evolving their business. Funeral services have transformed from somber and sorrowful times to celebrations of life with some funeral homes even providing spaces for outdoor gathering complete with grills.

In recent years, more women are graduating in mortuary science. Some people might become funeral service workers as a second career instead of inheriting the business, which has been a traditional entry into the industry. The National Funeral Directors Association encourages its members to seek out, hire, and train more women and non-binary people.

You can find mortuary science stars on social media, including the popular YouTube channel, Ask a Mortician. There are funeral directors’ TikTok videos, and mortician AMAs (ask me anything) on Reddit.

Get Started in the Funeral Business

Most states require a two-year associate’s degree in mortuary science or related areas, an apprenticeship or internship, and passing the national or state’s license exam. Ohio and Minnesota are the only two states that require a bachelor’s degree to be a funeral home director. Colorado does not have any education requirements, but licenses funeral homes instead. Kentucky doesn’t license funeral directors but does license embalmers.

The National Funeral Directors Association is your go-to source for state-by-state details of working in the funeral industry.

If you were also thinking about joining the military, the Navy is the only service branch with its own morticians. For that you need a high school diploma or GED, and then you would get training through the Navy as a hospital corpsman-mortician.

Licensure

You usually have to be at least 21 years old to take the exams, though you can start an internship or apprenticeship before that age. There may also be a criminal background check. Having a criminal record doesn’t mean you can’t become a mortician. You also have to submit proof of U.S. citizenship or permanent residency.

You can also study for and take the national funeral service education board exam. The pathways to these two types of exams can be different. It is important to note that not all mortuary science programs are accredited by the American Board of Funeral Service Education (ABFSE).

You can only take the National Board Exam if you have a degree from an accredited program. Some states allow you to take the state exam even if your program is not accredited. The exams are the same. It is just more difficult to practice in a different state if you haven’t attended an accredited program.

State Licenses

Most states have information about how to become a mortician through their occupational license, public health, or funeral board sections on their website. It is important that you clarify whether the mortuary science programs are accredited for just the state license exam, or for both state and national exams. Some schools also offer Funeral Arts Certificates, which can be used for other jobs in the funeral service industry.

National License

The American Board of Funeral Service Education is the national academic accreditation agency for college and university programs in Funeral Service and Mortuary Science Education. Most states have easier reciprocity requirements to transfer your practice if you have taken the national board exam. If you have taken the state exam only, you may have to meet all of the requirements again if you move to another state.

Classwork for the License

Coursework can be broken down into roughly three categories: art, business, and science. Art? That is for the restorative arts, or visually preparing the body for a funeral service, which includes hair and makeup. There are courses which cover death traditions from many cultures and the history of funerals.

Science classes may cover embalming theory and labs, anatomy, physiology, public health, and pathology. There are chemistry and biology courses, and also usually psychology courses on grief and bereavement training.

Business classes will cover funeral home administration, accounting, requirements for a funeral service license, and some business law. There are usually classes covering legal and ethical issues that a certified funeral service practitioner will face.

Cost of Getting a License

The cost of getting a two-year mortuary science degree varies by state but your best bet will be an in-state community college. Then there will be costs associated with taking exams and getting a license.

School

There is a huge difference in how much you can pay for a mortuary science associate’s degree. In-state public schools may cost between $5,000-$8,500. Private, out of state tuition might be almost $20,000. There are the normal student loans and grants available, but there are also specific grants for students studying mortuary science (even as a second career). It seems like a great investment, since unemployment for funeral directors is extremely low.

Exam

The National Board Exam has two sections, arts and sciences. Each one costs $285. There are practice exams that you can take, which are free. In Florida, the state funeral service examining boards charge $132 for exams. Maine charges $75 plus $21 for a criminal background check. Texas charges $89. Some states have two separate exams — one for funeral services and the other for embalming.

Licenses

This is another area with variation. Using the same three states as above, Florida’s license for a funeral director costs $430 with all the fees. Maine’s is $230, and Texas costs $175 plus $93 for the application. Apparently not everything is bigger in Texas! Licenses need to be renewed periodically, which also requires continuing education credits.

Funeral Director as Entrepreneur

The funeral industry has been changing rapidly over the last few years. Cremations have increased and burials decreased. Funeral homes make less money on cremations, and have responded to this shift by finding new sources of income and new ways to help people.

Green Funerals

There are more environmentally conscious choices that funeral homes can offer, including rental coffins for services (and a plain one after), biodegradable coffins, and natural burials. Green funeral services include sourcing flowers locally, using funeral invitations and programs made of recycled paper embedded with seeds, and biodegradable water urns, which sink and dissipate for at sea services..

Pet Funerals

An estimated 67% of households in the U.S. own pets, and many of them are using funeral home services for their animals. That includes memorials, services, and burials. Despite pet cremation being infinitely (well, 90 vs.10%) more popular than burial, there are over 200 pet cemeteries in the U.S., with Florida having the most.

Other Jobs in the Funeral Industry

Besides being an intern or apprentice, you can work in the funeral industry in many other ways. Florida lists 16 separate individual and business licenses for funeral home-related activities.

Here are the common jobs in the funeral or mortician industry though keep in mind in a smaller business, the funeral director may do some of them:

  • Administrative assistants handle office work.
  • Burial rights brokers arrange for third parties to sell or transfer burial rights.
  • Cemeterians maintain cemetery grounds (think groundskeeper).
  • Ceremonialists conduct the funeral service.
  • Crematory operators/technicians assist in cremation remains.
  • Direct disposers handle cremation when there is no service or embalming.
  • Embalmers prepare the body after death.
  • Funeral arrangers work with clients to set up the funeral.
  • Funeral home manager is the best paying job in the field, the median salary for this position is more than $74,000. The manager oversees all funeral home operations.
  • Funeral service managers are similar to funeral arrangers.
  • Funeral supply sales personnel work for the funeral home-sourcing supplies.
  • Monument agents sell tombstones and other markers for the cemetery.
  • Mortuary transport drivers prepare and transport human remains.
  • Pathology technicians work in hospitals, morgues, or universities with cadavers.
  • Pre-need sales agents help clients plan their services and burials before they die.

Frequently Asked Questions (FAQs) About Funeral Business Jobs

We’ve rounded up the answers to the most common questions about working in the funeral industry.

What Jobs Can You Do at a Funeral Home?

negotiate supplies, transport bodies, conduct funeral services, and work with clients to place obituaries and arrange the service. They also have sales people working on pre-need arrangements. Some funeral homes feature pet burials and have special jobs related to that.

How Much Do You Make Working at a Funeral Home?

Funeral directors average $55,000 annually. Managing a funeral home pays a median salary of $74,000. Mortuary transport drivers average over $35,000. It is a field with very low unemployment.

How Do I Get a Job in the Funeral Industry?

Most states require two years of school, a (paid) internship, and passing the appropriate license exams to become a funeral director. Other jobs may require less.The mortuary transport driver has to be able to lift 100 pounds or more and have a clean driving record.

What is a Funeral Home Job Called?

There are many. There are funeral directors, embalmers, mortuary transport drivers, and funeral service arrangers. There are also typical office jobs, such as administrative assistant and bookkeepers. There are also related jobs at crematoriums, hospitals, and mortuaries.

The Penny Hoarder contributor JoEllen Schilke writes on lifestyle and culture topics. She is the former owner of a coffee shop in St.Petersburg, Florida, and has hosted an arts show on WMNF community radio for nearly 30 years.

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Source: thepennyhoarder.com

Using Income Share Agreements to Pay for School

Many students end up taking out loans to finance the cost of college. As of the first quarter of 2021, Americans collectively held $1.57 trillion in student debt, up $29 billion from the previous quarter. And a significant share of borrowers were struggling with their debt burdens: Just under 6% of total student debt was 90 days or more past due or in default.

Students looking for alternatives to student loans can apply for grants and scholarships, take on work-study jobs or other part-time work, or find ways to save on expenses.

Recently, another alternative has appeared on the table for students at certain institutions: income share agreements. An income share agreement is a type of college financing in which repayment is a fixed percentage of the borrower’s future income over a specified period of time.

As this financing option grows in popularity, here are some key things to know about how these agreements operate and to help you decide whether they’re the right choice for you.

How Income Share Agreements Work

Unlike student loans, an income share agreement, also known as an income sharing agreement or ISA, doesn’t involve a contract with the government or a private lender. Rather, it’s a contract between the student and their college or university.

In exchange for receiving educational funds from the school, the student promises to pay a share of his or her future earnings to the institution for a fixed amount of time after graduation.

ISAs don’t typically charge interest, and the amount students pay usually fluctuates according to their income. Students don’t necessarily have to pay back the entire amount they borrow, as long as they make the agreed-upon payments over a set period. Though, they also may end up paying more than the amount they received.

Income share agreements only appeared on the scene in the last few years, but they are quickly expanding. Since 2016, ISA programs have launched at places like Purdue University in Indiana, Clarkson University in New York, and Lackawanna College in Pennsylvania. Each school decides on its own terms and eligibility guidelines for the programs. The school itself or outside investors may provide funds for ISAs.

Purdue University was one of the first schools to create a modern ISA program. Sophomores, juniors, and seniors who meet certain criteria, including full-time enrollment and satisfactory academic progress, are eligible to apply.

Students may have a six-month grace period after graduation to start making payments, similar to the six-month grace period for student loans, and the repayment term at Purdue is typically 10 years. For some schools, however, the repayment term ranges from two to 10 years.

The exact amount students can expect to pay depends on the amount they took out and their income. The university estimates that a junior who graduates in 2023 with a marketing major will have a starting salary of $51,000 and will see their income grow an average of 4.7% a year.

If that student borrowed $10,000 in ISA funds, he or she would be required to pay 3.39% of his or her income for a little over eight years. The total amount that student would pay back is $17,971. The repayment cap for the 2021-2022 school year is $23,100.

Again, every ISA is different and may have different requirements, so be sure to check with your college or university for all the details.

The Advantages of Income Share Agreements

ISAs aren’t for everyone, but they can be beneficial for some students. For example, students who don’t qualify for other forms of financial aid, such as undocumented immigrants, may have few other options for funding school.

For students who have already maxed out their federal loans, ISAs can be a more affordable option than Parent PLUS loans or private student loans, both of which sometimes come with relatively high interest rates and fees.

Compared to student loans, many ISAs also protect students by preventing monthly payments from becoming unaffordable. Since the amount paid is always tied to income, students should never end up owing more than a set percentage for a fixed period of time. However, a student’s field of study may impact this. Students who are high earners after college may end up paying more to repay an ISA than they would have under other financing options.

If a student has trouble finding a well-paying job, or finding one at all, payments typically shrink accordingly. For example, Purdue sets a minimum income amount below which students don’t pay anything.

In Purdue’s case, the student won’t owe anything else once the repayment period is over, compared to student loans that can multiply exponentially over time due to accrued interest.

Purdue and several other universities also set the amount and length of repayment based on a student’s major, meaning monthly payments can be more tailored to graduates’ fields and salaries than student loans are. For fortunate students who see their income rise beyond expectations, many schools ensure the student won’t pay beyond a certain cap.

Potential Pitfalls of Income Share Agreements

ISAs come with some risks and drawbacks, as well. Firstly, since the repayment amount is based on income, a student who earns a lot after graduation might end up paying more than they would have with some student loans. This is because if a student earns a high income after graduating, they’d pay more to the fund. Second, the terms of repayment can vary widely, and some programs require graduates to give up a huge chunk of their paychecks.

For example, Lambda School , an online program that trains students to be software engineers, requires alums who earn at least $50,000 to pay 17% of their income for two years (up to $30,000). This can be a burden for recent graduates, especially compared to other options like income-driven repayment, which determines the percentage of income going towards student loans based on discretionary income.

Currently, there is very little regulation of ISAs, so students should read ISA terms carefully to understand what they’re signing up for.

No matter what, income share agreements are still funding that needs to be repaid, often at a higher amount than the principal.

So you’re still paying more overall for your education compared to finding sources of income like scholarships, a part-time job, gifts from family, or reducing expenses through lifestyle changes or going to a less expensive school.

How Do Income Share Agreements Impact You?

Many schools’ ISA programs are designed to fill in gaps in funding when students do not receive enough from other sources, such as financial aid, federal or private student loans, scholarships or savings. Thus, it’s important to understand how an ISA will impact both your long-term finances and other methods to pay for college.

ISAs do not impact need-based aid like grants or scholarships. Students with loans, however, could have a more complicated repayment plan with multiple payments due each month.

With ISAs, there is less clarity as to how much you’ll end up repaying from up to 10 years of income. As your income changes, your payment will remain the same percentage unless it falls below the minimum income threshold ($1,666.67 at Purdue) or reaches a repayment cap.

Whereas students may pay more than the loan principal to reduce interest, ISAs often require reaching a repayment cap of roughly double the borrowed amount to be paid off early.

Depending on your future income and career path, an ISA could cut into potential savings and investments or serve as a safety net for a less stable occupation.

Who Should Consider An ISA?

As previously mentioned, income share agreements are an option for students who have maxed out on federal loans and scholarships. There are other circumstances when an ISA may or may not be worth considering.

Colleges may require a minimum GPA to be eligible for an ISA. For instance, Robert Morris University requires incoming students to have a 3.0 high school GPA and maintain a 2.75 GPA during their studies for continued funding eligibility. Taking stock of how an ISA aligns with your academic performance before accepting funding could reduce stress later on.

Since ISA programs structure repayment as a percentage of income, graduates who secure high-paying jobs can end up paying a significant sum compared to the borrowed amount. An ISA term could be more favorable to students planning to enter sectors with more gradual salary growth, such as civil service.

Repayment plans at income sharing agreement colleges are not uniform. Students at schools with lower payment caps and early repayment options may find ISAs more advantageous.

Considering Private Loans

Students should generally exhaust all their federal options for grants and loans before considering other types of debt. But for some students looking to fill gaps in their educational funding, private student loans may make more sense for their needs than ISAs.

Recommended: Examining the Different Types of Student Loans

In particular, students who expect to have high salaries after graduation may end up paying less based on interest for a private student loan than they would for an ISA. Some private loans can also allow you to reduce what you owe overall by repaying your debt ahead of schedule.

SoFi doesn’t charge any fees, including origination fees or late fees. Nor are there prepayment penalties for paying off your loan early. You can also qualify for a 0.25% reduction on your interest rate when you sign up for automated payments.

The Takeaway

As mentioned, an income share agreement is an alternate financing option for college. An ISA is generally used to fill in gaps in college funding. Generally, it’s an agreement between the borrower and the school that states the borrower will repay the funds based on their future salary for a set amount of time.

One alternative to an ISA could be private student loans. Keep in mind that private loans are generally only considered as an option after all other sources of federal aid, including federal student loans, have been exhausted.

If you’ve exhausted your federal loan options and need help paying for school, consider a SoFi private student loan.


SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.

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 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 Lending Corp. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

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.
Third Party Brand Mentions: No brands or products 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.
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Source: sofi.com

Paying your credit card early: Does it help your score?

Couple looking at finances together.

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

Paying your credit card early can raise your credit score. After your statement closes, your credit card issuer reports your balance to the credit bureaus. Paying your bill ahead of time lowers your overall balance, so the bureaus will see you using less credit in total. Since utilization makes up around one-third of your credit score, paying your card early can have a positive overall effect. 

However, paying your credit card bill early may work differently if you carry a balance on your card each month. Instead of paying your next statement early, you’re actually making an extra payment on your previous balance. Therefore, you’ll likely still need to pay the minimum amount on your next statement, or your payment could be considered late.

In most cases, paying your credit card bill early is a good idea—and it can have a positive impact on your score. 

Read on to learn more about how paying your card early affects your score. 

How paying your credit card bill early can help your credit score

Paying your credit card bill early may increase your credit score, since the overall debt that gets reported to the credit bureaus is likely to be lower. 

To understand how paying a bill early could raise your score, you need to understand two things: the factors that make up your score and how your credit issuer reports to the credit bureaus. 

How paying early could raise your score

Your score is calculated based on several factors, and two of them are relevant to paying your bill early: credit utilization and payment history. 

  • Payment history makes up around 35 percent of your score, and simply put, paying your bill early means that you aren’t paying it late. Late payments can have a major negative effect on your score, so paying your bill on time or early will help boost your score.
  • Credit utilization accounts for around 30 percent of your score, and it represents how much of your available credit you’re actually using. As a general rule, you should aim to use one-third of your credit or less. For example, if you have a total credit limit of $9,000, you’d want to keep your balance below $3,000.

The credit bureaus—TransUnion®, Experian® and Equifax®—are responsible for keeping track of your credit history. They receive all of their information from lenders, like the financial institution that issued your credit card. 

After your monthly statement is issued with your balance, you have a grace period before the payment is due—typically around 21 days. During that time, your credit card provider will report your balance to the credit bureaus. If you pay your balance before your statement closes, the total listed balance will be lower, so the credit bureaus will see your overall utilization as lower, which could increase your score.

That said, your particular situation may change how early payments work, so you’ll want to make sure you understand your billing cycle and balance before making early payments.

Is it ever bad to pay your credit card early?

While it is never bad to pay your credit card bill early, the benefits you receive from doing so may vary depending on your circumstances.

For example, if you carry a balance on your credit card every month, you may need to adjust how you handle early payments. While it is a myth that carrying a balance on your card improves your score, there are reasons you may have lingering credit card debt nonetheless.

Early payments work differently if your credit card has a balance.

If you do carry a balance on your card each month, keep the following in mind:

  • Your early payment may not count as your minimum payment. If you have a balance from a previous month, you can’t make an “early” payment toward your next statement. Instead, you’re making an extra payment, so you’ll still need to make a minimum payment after your new statement is issued.
  • You may not save money on interest and fees by making an early payment. Depending on how your credit card issuer calculates finance charges on your previous balance, your early payment may not reduce your interest or fees by much or at all. For example, if you’re charged based on average daily balance, simply paying at the end of the month may not help much.

All that said, it’s still usually a good idea to pay down your credit card debt if you have the funds available to do so. You may not see an immediate score increase if you have a substantial balance, but over time, you’ll build the financial habits that can help you eliminate debt and begin making on-time—or early—payments consistently. 

When is the best time to pay your credit card? 

The best time to pay your credit card bill is before the payment is late. While you may benefit from paying your bill early, you’ll definitely see negative effects if you pay your bill late. 

Paying early keeps your payment history intact and may help lower your overall utilization, while paying your bill more than 30 days late will likely lead to a negative item on your credit report. And if you neglect to pay long enough, your account could get sent to collections. 

If you do start paying your credit card bill early, you’ll want to begin checking your credit report regularly to see how your balance is being reported to the credit bureaus. Over time, you should see your utilization drop and your credit score increase.

While sifting through your credit report, it’s important to keep an eye out for inaccurate information like fraudulent accounts, incorrect negative items or factual mistakes. Any of these inaccurate items could be lowering your credit score. Fortunately, it’s possible to dispute these items on your report and repair your credit score. 


Reviewed by Horacio Celaya, Associate Attorney at Lexington Law Firm. Written by Lexington Law.

Horacio Celaya was born in Tucson, Arizona but eventually moved with his family to Mexicali, Baja California, Mexico. Mr. Celaya went on to graduate with Honors from the Autonomous University of Baja California Law School. Mr. Celaya is a graduate of the University of Arizona where he graduated from James E. Rogers College of Law. During law school, Mr. Celaya received his certificate in International Trade Law, completing his thesis on United States foreign direct investment in Latin America. Since graduating from law school, Mr. Celaya has worked in an immigration firm where he helped foreign investors organize their assets in order to apply for investment-based visas. He also has extensive experience in debt settlement negotiations on behalf of clients looking to achieve debt relief. Mr. Celaya is licensed to practice law in New Mexico. He is located in the Phoenix office. 

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Source: lexingtonlaw.com