Some college students grapple with a challenge that has little to do with grades or the overall college experience: helicopter parents.
These well-meaning moms and dads insert themselves into the lives of their emerging adult children to a degree that may hinder the development of coping skills.
College orientation programs for nervous parents have become more common. Even so, some parents have trouble letting go. With the price of college having doubled in 20 years, some parents want to make sure they’re getting their money’s worth.
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Hobbled by Helicopter Parenting
The risks of helicopter parenting are real, researchers say.
In a review article published in June 2022 in the Journal of Emerging Adulthood, researchers analyzed more than 70 studies done over the last 20 years on helicopter parenting. Across the board, they found strong negative associations between overparenting and a college student’s development in the psychological, behavioral, social, academic, and career areas.
Researchers define helicopter parents as moms or dads who “excessively monitor their children and often remove obstacles from their paths, instead of helping them develop the skills to handle the inevitable difficulties of life.” Helicopter college parents may reach out directly to college professors and administrators about grades or nag their children about academic deadlines and test results.
Why is this so harmful? When kids go off to college, they are entering a period of life psychologists call “emerging adulthood.” The goal during this phase is to become independent and self-sufficient. If a student’s parents are always doing things for them, it can keep them from learning essential skills they need to become a successful adult.
Overparenting can also make students feel inadequate and helpless, taking a major toll on their self-esteem. Studies have even found a link between helicopter parenting and higher alcohol and other substance use, depression and anxiety, as well as lower educational achievement. 💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.
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How to Deal With Helicopter Parents
For students stranded between demanding academic obligations and surveillance-minded parents, the path forward may involve a strong dose of self-discipline, a willingness to learn and make mistakes, and an open call for independence. Here are some ideas.
Adjust How You Engage
If parental hovering seems unavoidable, students may want to diplomatically tighten up engagements with Mom and/or Dad.
Unless the student is in a serious health or financial crisis, there’s no need for a daily phone call, Zoom meeting, or even text with parents.
Students should talk to parents before leaving for campus and ideally agree on a scheduled conversation, perhaps weekly or biweekly.
Students who do not feel pressured may decide that frequent calls, emails, or texts are OK — as long as they initiate the engagement.
Ask for a Coach, Not a Problem Solver
When a young person leaves for college, the temptation for many parents is to step in and solve every problem for them, thus taking a learning experience out of the equation.
Yes, living away from home for the first time can be intimidating and yes, a parent’s inclination is to take over the situation and straighten things out. That, however, may deprive the child of a much-needed learning experience.
Mistakes are inevitable. “It doesn’t matter how many times you fail. It doesn’t matter how many times you almost get it right. No one is going to know or care about your failures, and neither should you. All you have to do is learn from them and those around you …,” entrepreneur Mark Cuban has written.
Students should strive to make their own academic and lifestyle decisions (but not big health care or financial decisions, at least not yet), with parents supporting and coaching in the background.
Take the Long View
Helicopter parents invariably view their child’s problems and challenges on campus with a short-term outlook. Instead, students should emphasize the learning experiences they’re having and that the experiences are positive in the long haul.
While parents may fret over their child not getting into a class, missing out on a grant, loan, or scholarship, or just getting a problem roommate — situations that can call for a remedy — they’re experiences best handled by the student, who can make that exact case to parents.
It might be helpful to say: “Mom/Dad, I’m learning from my own problematic scenarios, I’m growing a thicker skin, and I’m learning how to solve problems and make decisions like an adult. When I do need your involvement, I hope you’ll trust me to let you know as soon as possible.”
The takeaway for both parties: A big part of attending college is becoming your own self-advocate in life, and some patience and pullback on the part of parents (and encouraged by the student) can help that happen.
Ask for Your Own Bank Account
To further declare independence from helicopter parents, college students may want to ask them to take their name off a shared bank account. Doing so will allow students to learn how to manage money on their own, with Mom and Dad in the background if needed.
Let parents know that any excessive spending or critical financial needs can, when necessary, involve them. But being responsible for finances is a critical lesson best learned by the student.
For college students, that means making the case that financial literacy is a gift and that college is a great place to earn it. 💡 Quick Tip: Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too. You can submit it as early as Oct. 1.
Create Boundaries on Student Portals
Digital student portals are valuable tools for both students and parents, but college students may want to establish boundaries on parental portal engagements.
Yes, parents will want to log on to the parental portion of their student’s online college portal (mainly to check finances, review financial aid, and pay tuition bills).
Past that, there’s no need for parents to regularly plug in to their student’s primary online portal and sound off about everyday collegiate experiences.
Particularly, college students may not want their parents looking at their calendars, classroom grades, student-teacher interactions, and portal emails designed for the student’s eyes only.
College students can remedy that situation by having their parents agree on portal access conditions, like checking grades once a month or even once a semester.
Making the case that portal engagements, with boundaries, are the domain of the student can provide a sense of trust and privacy, especially in the first year at school.
Take a Bigger Role in College Finances
College students may be able to help their own cause by partnering with parents on college financing issues and learning to be good stewards of their college money.
That means visiting the financial portion of the college portal and seeing what has been paid, what is owed, and what is available in financial aid.
Helping out with the Free Application for Federal Student Aid (FAFSA) each year will also give the student a realistic look at the cost of college, which may provide an incentive to make that cost worthwhile.
When you know exactly where you stand financially on campus, you can begin making decisions on key issues like course loads, living on or off campus, accepting a work-study program, and taking on a part-time job.
Additionally, taking a shared-responsibility role can help with long-term college decisions, like taking an internship overseas or moving on to graduate school.
The Takeaway
College students can take steps to deal with helicopter parents, who may hinder the development of skills to handle the inevitable difficulties of life.
The suggestions are rooted in convincing parents to take a supportive but not supervisory role in the student’s everyday college experience.
Financial literacy means knowing the options for paying the myriad costs of college, from tuition to housing and food: federal grants, work-study, student loans, merit scholarships, and private student loans.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
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A new lender has entered the mortgage space, but this one’s a little unique, and its offerings are too.
You see, they’re a “marketplace lender,” otherwise known as a peer-to-peer lender, meaning everyday investors can provide funds to borrowers seeking mortgages.
The lender in question, San Francisco-based Social Finance, or “SoFi” for short, says individuals and institutional investors have the ability to “create positive social impact on the communities they care about while earning compelling rates of return.”
In other words, you can be the mortgage lender and make some money in the process. Oh yeah, and earn some good karma if you think peer-to-peer lending is an act of goodwill.
Anyway, the company has already doled out over $1 billion in student loans and now has its sights set on the mortgage market, which some seem to think has become too restrictive. Just ask Ben Bernanke…
The idea here is to target early-stage professionals (recent graduates) who need help financing their home purchases (they also offer refinancing). They are known as “HENRYs,” or High Earners, Not Rich Yet.
Basically, they have the income, but they may not have the savings for a down payment yet, thanks to student loan debt and a lack of earnings history.
SoFi Offers Interest-Only and 10% Down Mortgages with No MI
Aside from appealing to Millennials
And being a tech-driven mortgage disruptor
SoFi also offers specialty home loans you won’t find everywhere else
Like interest-only products and low-down payment mortgages without MI
I dug into their website and found some interesting stuff. For one, they offer interest-only mortgages, which are considered non-QM and somewhat harder to come by these days.
Additionally, they offer loans with as little as 10% down without mortgage insurance, which again is slightly unconventional but probably just collected via a higher interest rate.
Still, they offer IO mortgages with loan amounts as high as $3 million, meaning they’re a jumbo peer-to-peer non-QM mortgage lender.
Per their website, they currently offer a 5/1 ARM with a 10-year interest-only option, a 7/1 ARM, and a 30-year fixed.
SoFi Home Improvement Loans
They also offer home renovation loans
With online approval to funding in just 7 days on average
The loans are unsecured so your home equity isn’t involved
SoFi doesn’t charge any closing costs and payments are fixed
The company also recently launched a line of home improvement loans for those looking to do renovations on an existing property.
They do not charge origination fees or other closing costs, nor do they charge for a home appraisal.
Additionally, you can borrow up to $100,000 without any home equity. To that end, they are more like personal loans than they are HELOCs.
Borrowers can take out amounts ranging from $5,000 to $100,000 depending on their needs.
At last glance, rates ranged from 6.58% APR to 13.62%, assuming you use autopay to make monthly payments.
And terms varied from just three years to seven years and potentially longer.
They advertise fixed rates, but you might have the option of a variable rate as well.
SoFi Mortgage Rates Seem Pretty Competitive
They seem to offer pretty attractive mortgage rates
Relative to the competition
And because SoFi doesn’t charge origination fees
The rates might even be cheaper than they look
I took a look at SoFi mortgage rates on June 1st, 2018 and they appeared to be fairly competitive relative to what else is out there.
The assumptions were for an 80% loan-to-value ratio, which means 20% down payment or 20% in existing home equity. If you’re putting down less or have less equity, expect a higher interest rate.
Additionally, the 5/1 ARM assumes a 75% LTV, so you need at least 25% equity or down payment.
Sample mortgage rates from June 1st, 2018 were as follows:
– 4.375% for the 5/1 ARM with an interest-only option
– 3.875% for the 7/1 ARM
– 4.125% for the 15-year fixed
– 4.25% for the 30-year fixed
They seem pretty close to what traditional lenders are offering these days, though keep in mind that SoFi doesn’t charge loan origination fees, similar to Eave, so you need to factor in the lower fees as well, which can be a game-changer.
SoFi’s Loan Underwriting Is Supposedly Quick and Easy
SoFi is attempting to speed up the home loan process
By banking on technology
They say they can close a mortgage in less than 21 days
Versus the industry average of 30-45 days
Are you an ambitious professional? If so, you might be the right fit for SoFi. Even more intriguing than their product offerings is their underwriting process.
SoFi claims that they can fund a mortgage in less than 21 days, as opposed to the industry average of 30-45 days. And they promise not to ask for “useless details.”
Part of their speediness be related to the fact that they use AVMs instead of appraisals for loan approval, which can certainly save some time. However, they eventually conduct an in-person appraisal as well.
They also ask applicants to apply and upload documents online, which allows them to complete loan approvals complete with automated valuations in less than 48 hours.
SoFi Cares Where You Went to School and What You Majored In
Because of their student loan background
SoFi cares where you went to school
And what you studied while you were there
This is probably a means to keep defaults low by only going after applicants with bright futures
Of course, there is a major caveat. In order to qualify for a SoFi mortgage, you need to have graduated from a selection of Title IV accredited universities or graduate programs.
This might have something to do with the fact that they were a student loan lender before jumping into mortgages.
Not sure which schools/degrees qualify, but I think the expectation is that even if you aren’t making much money now, you’re expected to be in the near future.
I went through the beginning of the loan application process online and noticed that only certain degrees were listed. It’s unclear if it’s an exhaustive list, but they certainly take schooling seriously.
However, SoFi refers to their debt-to-income limits “flexible,” so you might be okay if income is a little light as long as you went to Stanford.
They also determine loan eligibility by credit history and employment status, and require that applicants be at least the age of majority in their state. So I take that to mean no child doctors. Sorry Doogie.
At the moment, SoFi mortgages are only available in California, DC, New Jersey, North Carolina, Pennsylvania, Texas, and Washington on owner-occupied properties, but they’re expected to reach other states soon.
For the record, if you want to become an investor in SoFi mortgages, you need to be an accredited investor, which generally means you need to have a net worth of over $1 million (excluding your primary residence) or make $200k per year.
So no, not every Tom, Dick, and Harry can become an individual mortgage lender, but those with money can.
It’ll be interesting to see if P2P lending gets more popular in the mortgage world as prospective homeowners look beyond traditional banks and lenders for financing. Stay tuned.
SoFi Is Offering Free Avocado Toast to Mortgage Customers
Back in 2017 they ran an avocado toast promotion
To make it really clear who they were targeting
Young prospective home buyers
It was a play on Millennials love for the culinary treat
This just in…in a bid to be the silliest mortgage lender out there, and perhaps appeal to disgruntled Millennials, SoFi is offering free avocado toast to customers who take out a purchase mortgage with the company in July 2017.
While it’s hardly a reason to buy a home, or take out a mortgage with SoFi specifically, it is kind of funny.
The back story is that Millennials have been accused of wasting all their money on trendy foodie things like avocado toast, dashing their hopes of homeownership.
To combat this myth, or perhaps reinforce it, SoFi is giving away a month’s worth of avocado toast to its customers for a limited time, delivered straight to their new door.
Curious how much a month’s worth is? Apparently three shipments of bread and avocados. Oh, and you get to select gluten-free or regular bread, but you have to toast it yourself…
It may cost you, but the quality of life in Connecticut makes it worth it for many people. The state has great schools, low crime, access to outdoor activities and great, fresh food. Being part of New England, Connecticut is also full of history and culture, with plenty of museums. There’s even an amusement park should you need a change of pace.
To fit Connecticut into your budget, it’s best to understand how the state’s prices compare to the rest of the country. By looking at average costs in a few specific categories, you can make an informed decision about whether a move is in your future.
Connecticut housing prices
Housing prices in Connecticut all hit above the national average. That doesn’t mean you can’t find affordable housing throughout the state or a home for any budget. But, it could be more challenging to get those good deals.
Hartford
The capital of Connecticut, Hartford is one of the more affordable places to live in the state. Housing prices are only 1.4 percent above the national average, so not too far out of reach for many. The city has a long history, solid job opportunities and some amazing museums. The variety of local parks is an ideal family-friendly destination, as well, when the weather is nice (it does get cold in the winter.)
Apartment prices are on the rise and may sit at the high end of your budget. One-bedroom apartments, up 14 percent over last year, have an average monthly rent of $1,747. Two-bedroom apartments, up 10 percent over last year, have an average monthly rent of $2,367.
Home prices aren’t rising as quickly as apartment rent, up only 2.6 percent over last year. The median home price in Hartford is $240,000.
New Haven
Home to Yale University, New Haven is a college town with a little bit more. The prestigious university is a cornerstone of the city, but there’s also the beach, the history, museums and even nearby skiing. Living in New Haven isn’t cheap, though, and home prices are 20.9 percent above the national average.
Apartments are going to cost you, too, especially if you’re a college student. You may want to consider a roommate to keep things affordable. The average monthly rent for a one-bedroom apartment is $2,455, which is up 18 percent over last year. Two-bedroom apartments, up 17 percent over last year, average out to cost $3,102 per month.
Homes for sale are a little more reasonable, and the median sale price in New Haven is $280,000, down 12.5 percent over last year.
Stamford
With the highest home prices in the state, the cost of living in Connecticut really gets skewed thanks to places like Stamford. Here, home prices are 68.6 percent above the national average. This affluent city primarily attracts families and professionals and is perfectly situated for commuters. Many neighborhoods provide a small-town feel without taking you too far away from the urban amenities of downtown. That’s good news since your housing budget may make it hard to live right in the middle of it all.
Apartment rents are increasing at a pretty significant rate. One-bedrooms are up 23 percent, and two-bedrooms are up 34 percent, both over last year. This puts average monthly rent prices up there. The average rent for a one-bedroom is $2,654 per month, while a two-bedroom averages out at $3,599.
Home prices are also on the higher side, and the median sale price in Stamford is $680,000. This is up 11.5 percent over last year.
Connecticut food prices
Lobster rolls are the most iconic food out of Connecticut (and all of New England), but the state does a few favorites just a little differently. First, they steam their cheeseburgers rather than grill them, and if you’re in New Haven it’s ‘apizza’ and not pizza that’s on the menu. In the fall, you can sample another iconic Connecticut food, homemade apple cider. With all this deliciousness, Connecticut residents spend between $267 and $300 per month on groceries.
Across the state, food prices align with other costs of living elements in Connecticut and are above the national average.
New Haven is 0.4 percent above the national average
Stamford is 8.2 percent above the national average
Hartford is 8.4 percent above the national average
With these averages relatively close together, you most likely won’t find huge price differentials in specific grocery items. The difference in ground beef prices is less than a dollar across these three cities, and a dozen eggs are only 11 cents more from their cheapest to most expensive.
Average prices are a little higher for some things, though. A loaf of bread in Hartford is on the high side at $4.69, but even with a few doozies, you can stay on a budget when you grocery shop.
Connecticut utility prices
Connecticut winters can really ramp up your utility costs. The winter season is long, with the lowest temperatures between December and February. Evening temperatures can get down to zero degrees Fahrenheit, and snowfall is heavy. As a result, you may pay more for heating in the winter, which can raise overall utility prices pretty quickly.
Hartford is 26.4 percent above the national average
Stamford is 30.3 percent above the national average
New Haven is 32.2 percent above the national average
These averages, and the amount of energy you need to live in comfortable temps year round, can drive up your energy bill. Expect to pay an average of $260 per month in Hartford, $273 in Stamford and $279 in New Haven.
Connecticut transportation prices
Transportation prices throughout Connecticut are all above average, but on the whole, this state is very easy to get around. With some of the most walkable cities in the country, certain pockets of Connecticut are perfect for those who don’t want the expense of owning a car. Strong public transportation systems also make it easy to get around without having to pay for gas, parking or regular vehicle maintenance.
That said, transportation is still an expensive component of the cost of living in Connecticut.
Hartford is 4 percent above the national average
New Haven is 14.3 percent above the national average
Stamford is 16.2 percent above the national average
At these prices, it might be worthwhile to use a variety of transportation options to get around.
The walkability of Connecticut
It’s impressive for a state to have so many cities with high walk scores, and across Connecticut, infrastructure design really takes those on foot into consideration.
The downtown area, along the riverfront in Hartford, is extremely walkable, but so are a lot of nearby neighborhoods. Overall, the city has a walk score of 75.
New Haven’s downtown area has many sidewalks, with highly walkable areas around Yale’s campus and in nearby squares. Combined, this gives the city a walk score of 78.
Stamford has a walk score of 84. With walkable blocks, sidewalks and pedestrian walkways, the city is easy to navigate on foot, especially around the waterfront. There’s also a free trolley for when your feet get tired.
Public transportation in Connecticut
Each of our Connecticut cities provides public transportation, enabling residents to get around town without their own vehicles.
Hartford offers up two options. CT Transit has both local and express bus services around the city. For local service, a two-hour pass is $1.75, and a 31-day pass is $63. The dash Shuttle is another option. It’s a free service that runs downtown during the week, with extra service during major downtown events.
CT Transit also operates in New Haven and Stamford. New Haven buses run across 22 different routes, while Stamford operates 15. As long as you’re on a local bus line, even in separate cities, CT transit passes are the same price.
Stamford offers one additional mode of public transportation, the Harbor Point Trolley. This line connects the downtown area to Harbor Point, stopping at major spots like the government center and the University of Connecticut. The trolley is free to ride.
Connecticut healthcare prices
Healthcare prices in Connecticut are one of the few cost of living components with one city averaging below the rest of the county.
Hartford is 7.4 percent below the national average
Stamford is 7.2 percent above the national average
New Haven is 10.5 percent above the national average
These averages come from combining doctor visits, trips to urgent care, prescriptions, that annual eye doctor visits and dental check-ups. These averages put doctor’s visits between $100 and $140, dental visits between $87 and $122 and eye doctor visits between $127 and $155.
Connecticut goods and services prices
Eating that special New Haven ‘apizza’, grabbing a six-pack of craft beer or having cheeseburgers with friends all fit into the goods and services section of your budget. These are the activities you like doing but could live without if money got tight.
In Connecticut, goods and services prices, combined, all reach above the national average.
Hartford is 10.6 above the national average
New Haven is 16.7 percent above the national average
Stamford is 18.6 percent above the national average
These averages could mean you get to do a little less of those bonus activities each month, simply because of cost. The only way to really know is to look at the individual prices of your favorite extras.
Yes, we threw in one practical service into the chart, but when you price compare, you can see that not everything costs the most in Stamford. When it comes to beer and dry cleaning, Hartford actually takes the top spot, although overall, it’s the least expensive city, and New Haven is the cheapest when it comes to burgers. Without knowing individual costs, it’s impossible to budget for this aspect of the cost of living in Connecticut.
Taxes in Connecticut
Connecticut has a graduated income tax, which means your rate comes from how much money you make each year. You’ll end up paying somewhere between 3 percent and 6.99 percent.
When it comes to sales tax, the state-wide rate is 6.35 percent. That’s all you’ll pay across Connecticut. There are no local sales taxes.
So, if you’re shopping for furniture for your new apartment, for every $1,000 you spend, you’ll pay $63.50 in taxes. Not too bad.
How much do I need to earn to live in Connecticut?
The first thing you need to live in Connecticut is a home, and being able to afford one means putting at least 30 percent of your annual income toward rent. This is definitely possible, and you can calculate exactly what would work with your budget using our rent calculator.
To estimate needs, the average rent in Connecticut is $1,713. To afford this rent, at 30 percent of your income, you’d need to make a minimum of $68,520. This is highly possible given that the average annual wage comes really close. At $66,130, you’re right on the edge of affording an average rent, and not too far that you won’t have plenty of options to pick from that are just a little less.
Living in Connecticut
Connecticut may come at a higher-than-average cost, but calling the Constitution State home has plenty of benefits. Connecticut has the beach, great parks and a strong economy. Its location puts you close to just about anywhere in New England (and New York) and educational opportunities are top-notch.
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of August 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
When deciding which applicants to accept, colleges and universities typically look for the best of the best. But, that doesn’t always mean the “best” is the person with the highest grades in high school.
Yes, a student’s grade point average, or GPA, is a good metric for measuring just what and how successfully they completed their high school course, but how much does a student’s GPA really matter for college admission? It depends.
Keep reading to find out when it matters, when it doesn’t, and all the other factors college admissions take into account beyond a student’s GPA.
Weighted vs Unweighted GPA
Traditionally, high schools measure a student’s academic performance on an unweighted GPA scale, meaning the number only goes up to a 4.0 for an A in a class. This measurement method does not take into account the difficulty level of classes, so an honors English class will be measured in the same way as a non-honors class.
On the other hand, weighted GPAs do take into account the difficulty level of a student’s coursework. Most weighted GPA scales measure from a 0 to a 5.0. This means, an AP-level or honors level class could earn a student a 5.0, while a lower-level class will only reward A work with a 4.0.
A weighted scale can offer students a little more flexibility when it comes to their overall GPA. Say a student is taking four classes, one is an honors level course and the three others are typical classes. The student receives an A in the honors class, which accounts for a 5.0; an A in two other courses, denoting a 4.0 and a 4.0, and a B in the last, at a 3.0. Despite receiving a B in a course, that would still end up with a weighted 4.0 GPA. 💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.
Do Colleges Look at Weighted vs. Unweighted?
For the sake of looking at all applicants equally, colleges generally look at unweighted GPAs. They will typically separately consider how rigorous the coursework was. So, for example, if you took all AP classes and have an unweighted 4.0 GPA, you would be seen as a stronger applicant than someone who took less challenging courses and also got an unweighted 4.0, even though your GPAs are the same.
Colleges also look at unweighted GPAs (as well as standardized test scores and other factors) for merit-based scholarships. The more successful students are more likely to receive tuition funding.
College admissions staff may also look into other things when it comes to a student’s GPA, including grade trends. If a student didn’t start out high school on the best note, but performed well during their junior and senior year with a strong GPA, admissions may see that as excellent growth and perseverance in a student’s academic career.
Recommended: How Do Grades Affect Your Student Loans?
A “Good” GPA
Again, it’s important to remember that your GPA isn’t everything and that college admissions staff will likely look at much more than just your grades. However, it’s also always nice to know where you stand amongst the pack.
The average high school GPA is around 3.0 (or a B), including students who do and don’t apply to college. However, the average GPA for students applying to college is closer to 3.5 to 4.0, and the average for students applying to Ivy League schools can be even higher – 4.00 or close to it.
The average weighted GPA is 4.15 at Harvard and MIT.
While GPA isn’t everything, it’s a good idea to keep it in mind when deciding which schools, or how many, to apply to.
Recommended: How to Get Into College With a GED
What Else Do Colleges Look At?
Yes, colleges will take into account a student’s GPA. However, colleges and universities also take into account a complete picture of who a student is. That means they look into trends in a student’s grades throughout their education and likely look at a student’s test scores on the SAT or ACT.
College admissions officers also look at a student’s involvement in extracurriculars, sports teams, their involvement in their community through organizations and volunteer work, and any relevant work experience.
Admissions staff will also likely weigh a student’s application using their recommendation letters, which speak to a student’s merit far beyond their grades. Admissions will also read a student’s complete application and read any required essays.
Again, a lot goes into the admissions process, and grades aren’t the end all be all. This all means when you are preparing for college, even in your early high school years, you may want to prepare by diversifying your interests and pursuits to ensure they can tell a larger story in their application.
Colleges That Don’t Take GPA Into Account
There are schools out there with low or no minimum GPA requirements for applicants. These include many for-profit schools, as well as community colleges. In fact, if your GPA is on the lower end, you might consider attending a community college for a year or two and then transferring to a four-year university or college.
For example, California Community Colleges do not have a minimum GPA or testing requirements for incoming students. Attending a community college could be a great way for students to learn and grow personally and academically, and to increase their academic performance before transferring.
No Matter a Student’s GPA, It’s Good to Have a Plan
Being financially prepared for college can help take some of the stress away from worrying about how your GPA will affect your chances of admission.
While filling out applications, you may want to also look into all your financial options as well. This begins with filling out the Free Application for Federal Student Aid (FAFSA) to see if you are eligible for federal student aid, which include grants, scholarships, work-study, and federal loans.
If you still have gaps to fill, you may also want to consider a private student loan via a bank, credit union, or private lender. Unlike federal student loans, this involves a credit check. Students who have strong finances (or have a cosigner who does) stand to get lower interest rates and more favorable loan terms. Keep in mind that private student loans don’t come with government protections such as forbearance and forgiveness programs. 💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.
The Takeaway
GPA is one factor in the college admissions process. How heavily GPA is weighted as a factor in admissions decisions will vary from school to school. Many schools will list the average GPA of admitted students, which can help give you an idea of how your GPA stacks up to students at that school. Other factors for admission might include a student’s transcript, letters of recommendation, and personal essay.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
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.
With friendly Midwestern cities and beautiful rolling plains and prairies, Kansas has a fantastic blend of urban and rural living. Cities like Topeka, Wichita and Kansas City (which is split between Kansas and Missouri) are world-class hubs for everything from industries like aircraft manufacturing to melt-in-your-mouth barbecue. While it’s true that Kansas City is a great city with cool neighborhoods, dining and more, Kansas has much more to offer. Artsy small cities and towns have affordable, family-friendly living, and a refreshing lake or scenic wilderness preserve is never far away.
Overall, the cost of living in Kansas is also affordable. While bigger cities may have higher rents and housing prices, the diverse range of cities and towns guarantees you’ll find a place that fits your budget and lifestyle. Some are up-and-coming destinations for young professionals, while others focus on relaxed, family-centered towns. Covering everything from housing to utilities, here’s what you can expect in terms of the cost of living in different places around the Sunflower State.
Kansas housing prices
One of the biggest benefits of living in Kansas is its low housing costs. In most Kansas cities and towns, the cost of housing is below the national average. In most major cities, you’ll find reasonably-priced apartments and houses, with rents rarely surpassing $1,000 a month.
Here’s what the average rent and home prices are like in some of Kansas’ biggest and most popular cities.
Hutchinson
Surrounded by the beautiful Kansas prairie in the center of the state, Hutchinson is a compact city with a population of around 39,712. Due to its location, some of its biggest industries are wheat farming and working in the local oil industry. In addition to being the site of the Kansas State Fair, city parks and nearby state parks make this a lovely place for outdoor recreation. It also has a zoo and the famous Cosmosphere, a space museum and STEM education center.
At 45.6 percent below the national average, Hutchinson’s total housing costs are the lowest beneath the national average of our highlighted cities. The average monthly rent for a one-bedroom apartment is $719, up 6 percent from last year. The monthly rent for a two-bedroom apartment is up 14 percent to $829.
Hutchinson’s housing market has also grown over the past year. The median sale price to purchase a home here is up 2.6 percent to $143,450.
Kansas City
Straddling the border of Kansas and Missouri, Kansas City, KS’s population of 154,545 makes it the third-largest city in the state. This dynamic metro area is best known for its jazz, barbecue and culture. Live sports are also a big deal here, thanks to both professional and collegiate teams, courtesy of local universities. The combination of a vibrant cultural scene, affordable cost of living and a diverse job market make it a popular Midwestern metropolis to call home.
Kansas City’s cost of housing is 0.4 percent below the national average. The average rent for a one-bedroom apartment is $915 and a two-bedroom unit is $1,034. These rates are up 5 and 2 percent from the previous year.
If you want to buy a home in Kansas City, KS, you’ll be looking at a median sale price of $205,000, which is up 10.8 percent from last year.
Manhattan
Located at the confluence of the Big Blue and Kansas Rivers in northeastern Kansas, Manhattan is one of Kansas’ top college towns. It’s the home of Kansas State University, which is one of the top higher learning institutions in the state. As a college town, Manhattan has great dining, a lively cultural scene and fun activities. Nearby Turtle Lake is a regional destination for boating, hiking and other outdoor recreation.
As a college town, housing costs here are affordable, falling 19.9 percent below the national average. You can rent a one-bedroom apartment for $805 and a two-bedroom apartment for $952. These rates are both up 10 percent from last year.
With no significant growth or decline over the past year, houses in Manhattan go for a median sale price of $178,000.
Topeka
Apart from being the state capital, Topeka in northeastern Kansas has many other claims to fame. For one, the landmark Supreme Court case Brown v. Board of Education of Topeka, which ruled that racial segregation in schools was unconstitutional, originated here. Along with the rest of its rich history, an abundance of parks, family activity centers and laidback neighborhoods make Topeka a very family-friendly city.
Extremely affordable housing is another benefit of living here, with housing costs being 20.4 percent below the national average. You can rent a one-bedroom apartment for $790 or a two-bedroom apartment for $857. However, rent prices have been going up slightly over the past year. The cost for a one-bedroom unit is up 1 percent and two-bedroom unit prices are up 12 percent.
Topeka offers potential homeowners a refreshing low median sale price of $140,000. This rate is up a whopping 64.7 percent from last year. With national median sale prices currently at $428,006, buying a home in Topeka is quite the deal.
Wichita
Located in south-central Kansas, Wichita is the most populous city in the state. In addition to being known as the “Air Capital of the World” due to its many airline manufacturing facilities, numerous airports and Air Force base, it’s a regional hub for art, culture, healthcare and the restaurant industry (Pizza Hut and White Castle originated here). Residents can enjoy the great outdoors in both the heart of the city at parks like Botanica, the Wichita Gardens and out of town at nearby wilderness and recreation areas like Cheney Reservoir.
Even though both average rent and home prices have increased over the past year, Wichita’s housing costs are 34.3 percent below the national average. One-bedroom apartments are up 15 percent to $800 and two-bedroom apartments are up 12 percent to $964.
Wichita also has one of the most expensive housing markets in the state. The median sale price for a house here is up 16.2 percent from the previous year to $215,000.
Kansas food prices
From access to fresh, local meat and produce to delicious state specialties like barbecue and chicken-fried steak, the cuisine in Kansas is some of the best in the Midwest. Agriculture is a major industry in Kansas, with wheat being its biggest cash crop. Corn and soybeans are also top crops. Along with Texas and Nebraska, it’s one of the biggest suppliers of cattle in America. Cities like Kansas City, Topeka and Wichita have fantastic dining scenes, with nationally-renowned barbecue joints.
With so much great food to enjoy, luckily, locals pay below the national average for the cost of living in Kansas for food costs. Total grocery costs here are 7.4 percent below the national average. The average Kansas resident pays between $233 and $266 a month on food, which comes out to between $2,801 and $3,200 annually.
Although overall food costs here are lower-than-average, some cities have even more affordable food prices:
Topeka is 22.9 percent below the national average
Manhattan is 8.1 percent below the national average
Kansas City is 7.8 percent below the national average
Hutchinson is 7.7 percent below the national average
Wichita is 2 percent below the national average
Topeka has some of the lowest food prices in the state. A dozen eggs cost $1.09 in Topeka compared to $1.60 in Manhattan and $1.70 in Kansas City. The price tag for a half-gallon of milk in Topeka is $1.55. In Manhattan, it will set you back $2.11 and $2.26 in Kansas City. Steak costs $15.09 in Wichita but $9.49 in Topeka and $13.28 in Kansas City. As you’ll see, even though Wichita is the closest to the national average, food prices are sometimes higher in other cities.
Kansas utility prices
In most cities, you’ll pay less than the national average for the cost of living in Kansas for utilities like electricity, water and internet.
Kansas boasts a diverse energy profile. The state gets its electricity from a mix of nuclear power and traditional natural gas and petroleum, as well as renewables like solar power and hydroelectric power. The majority of the state’s water comes courtesy of the Missouri River.
Here’s how total utility costs in these different cities stack up to the national average:
Topeka is 4.1 percent below the national average
Hutchinson is 2.5 percent below the national average
Wichita is 2.1 percent below the national average
Manhattan is 0.9 percent below the national average
Kansas City is 2.6 percent above the national average
Of our highlighted cities, Kansas City has the most expensive utilities. As an example, the average monthly energy bill is around $178.88. In Topeka, the least expensive city, your monthly energy bill will likely skew closer to $154.60.
The average water bill in Kansas is $26.
Kansas transportation prices
From gas prices to the cost of mass transit, transportation is a key part of any monthly budget to figure out the cost of living in Kansas. Overall, transportation costs in Kansas are below the national average. Along with personal vehicles, most cities and counties in Kansas offer some form of public transportation. These largely consist of bus routes. The Kansas Department of Transportation helps support 145 transit programs that cover most Kansas cities. In some cases, these services are focusing on aiding senior citizens, those with disabilities and other eligible riders with getting around easily and affordably.
Not only does using mass transit help residents save money on gas and other vehicle expenses, but using public transportation has a host of other benefits. In bigger cities, it can reduce commuting times and traffic congestion. It’s also more environmentally friendly, reducing the number of vehicles on the road and, therefore, emissions.
Here’s how transportation costs vary between these different Kansas cities:
Kansas City is 13.4 percent below the national average
Hutchinson is 10.2 percent below the national average
Topeka is 9.1 percent below the national average
Wichita is 8 percent below the national average
Manhattan is 6 percent below the national average
While each of these cities has some kind of mass transit, options are more limited in smaller cities. In Hutchinson, the Reno County Area Transit provides several fixed bus routes around the city and Reno County. It also has an on-demand service for rural routes. Fares for in-town service start at $4 and rural service at $8, with discounts for eligible citizens like the elderly.
Manhattan residents have the ATA bus system, with routes around Manhattan and surrounding counties and cities like Ogden and Junction City. There are five different routes in town, as well as dedicated routes to and around Kansas State University. All students, staff and faculty of K-State get to ride these routes for free. Bus fares within Manhattan start at $1 for a one-way ride and you can also get day, week and monthly passes.As two of the state’s biggest cities, Topeka and Wichita have some of the most extensive public transportation systems in Kansas.
Topeka Metro in Topeka
Residents of Topeka can get around their city with the help of Topeka Metro. Consisting of a fleet of buses and paratransit vehicles, it operates 12 different bus routes. In a more sustainable move, the fleet will soon acquire three all-electric vehicles.
Single ride fares cost $2, with day passes available for $4 and monthly passes for $50. Senior citizens, those with disabilities and youth between the ages of 5 and 18 are eligible for discounted rates.
However, with a low transit score of 25, having a car might be a necessity in Topeka. Car drivers may need to plan for tolls on the Kansas Turnpike. This 236-mile-long freeway starts in Kansas City and runs through several major Kansas cities, including Topeka. Toll fees vary depending on the length of your trip. You can use this toll calculator to estimate toll fees for your drive. Traveling the entire length of the turnpike would cost $11.15 with a K-tag and $15 without.
Topeka is also not the most bike- or pedestrian-friendly city, with a walk score of 41 and a bike score of 56.
Wichita Transit in Wichita
The Wichita Transit system in Wichita operates 18 different bus routes around the city. It also has paratransit services. The organization dedicates itself to making local mass transit more sustainable and eco-friendly, being the first city in Kansas to include zero-emission, 100-percent electric buses in its fleet. A single ride costs $1.75. Pass options include an unlimited day pass for $5 and a monthly pass for $55.
With a low walk score of 43 and a decent bike score of 50, it’s still necessary to own a personal vehicle to get around Wichita. The Kansas Turnpike also passes through Wichita, so you’ll need to know of tolls, as well.
RideKC in Kansas City
Consisting of buses, bus rapid transit and streetcars, RideKC provides mass transit throughout the interstate Kansas City metro area. It has 78 bus routes, three bus rapid transit lines and a downtown streetcar. Through 2023, all RideKC buses and streetcars are zero-fare.
With a transit score of 28, a walk score of 40 and a bike score of 32, having your own vehicle is likely a necessity in Kansas City. If you do plan to use a car in Kansas City, the Turnpike ends in Kansas City so you may need to pay tolls if you use it.
Kansas healthcare prices
Depending on where you live in Kansas, you may pay more or less than the national average for healthcare. While the location is a factor in healthcare prices, so is your personal health. In general, the cost of living in Kansas for healthcare is a difficult category to quantify and get accurate averages since healthcare costs vary by person. Some people may need to pay more for their healthcare due to pre-existing conditions or the need for specialized care. So, the prices below are not set in stone and are subject to change due to your individual healthcare needs.
But to give you a rough overview of how healthcare costs vary between Kansas cities, here’s the average cost to go to the doctor’s office in these different cities:
Topeka: $129
Hutchinson: $142.50
Wichita: $104.40
Manhattan: $137.50
Kansas City: $89.77
Although Hutchinson has the highest price for doctor’s visits, it’s one of the least expensive cities to go to the dentist. A dental check-up costs $92 in Hutchinson. In Manhattan, you’ll pay high prices for both general and dental health, as a dental check-up there costs $109.50.
Now, let’s see how overall healthcare costs in these cities compare to the national average:
Manhattan is 10.4 percent above the national average
Kansas City is 9.7 percent below the national average
Wichita is 2.9 percent below the national average
Topeka is 0.7 percent below the national average
Hutchinson is 6 percent above the national average
Looking at the overall average and individual costs, Topeka and Wichita have lower healthcare costs. But, prices do fluctuate between cities, so it’s something to know.
Another important factor to know is the quality of Kansas’ healthcare system. The state ranks 41st in the nation for healthcare, with especially low marks for quality. It also doesn’t score well for access to healthcare services and for overall public health. So, higher prices may not always correlate to the best care.
Kansas goods and services prices
Living in Kansas, you’ll pay below the national average for miscellaneous goods and services. These include routine activities like going to the movies or getting your hair cut or regular purchases like toothpaste and ibuprofen.
Overall, Kansas cities boast lower-than-average prices for goods and services:
Topeka is 23.4 percent below the national average
Kansas City is 8.7 percent below the national average
Manhattan is 5.5 percent below the national average
Hutchinson is 2.4 percent below the national average
Wichita is 0.1 percent below the national average
Wichita is the closest to the national average. Getting your hair cut in Wichita costs $19 compared to $14.25 in Hutchinson, which is the cheapest rate in our highlighted cities. But, prices in Wichita won’t always rank higher. In many cases, costs are higher in smaller cities like Manhattan or Hutchinson. For example, movie tickets in Manhattan cost $14 but $10.12 in Wichita. Taking your clothes to the dry cleaners in Manhattan costs $17.99, the most expensive rate in the state. You can find the cheapest dry cleaning bill in Topeka at $12.20. In other instances, prices in Kansas City are higher, with haircuts costing $19.70 and a trip to the dry cleaners costing $14.63.
Taxes in Kansas
Taxes are another cost of living in Kansas factor that can vary widely between states and even between cities within that state. If you live in a city with high sales tax, those added expenses will have an impact on activities like grocery shopping.
Kansas has a statewide sales tax of 6.5 percent. If you spend $1,000 on a delicious Kansas barbecue spread, you’ll be paying $65 extra in sales tax. But, many counties or cities also levy their own sales tax on top of the statewide rate. This can significantly hike up the amount you’ll pay in sales tax:
Topeka has a combined tax of 9.15 percent
Hutchinson has a combined tax of 8.6 percent
Wichita has a combined tax of 7.5 percent
Manhattan has a combined tax of 8.95 percent (with an increase to 9.45 percent in 2023)
Kansas City has a combined tax of 9.12 percent
This makes Wichita the most affordable city for sales tax. Instead of paying $65 in sales tax for every $1,000 spent, you’ll spend $75 in sales tax. Currently, Topeka has the highest sales tax, adding $91.50 to every $1,000 spent. But, Manhattan will claim the top spot next year when the sales tax within city limits increases to 9.45 percent. The sales tax for Riley County will stay the same. You can see exactly how much you’d pay in sales tax in different Kansas cities and counties with this tax rate locator from the Kansas Department of Revenue.
For income taxes, the tax rate in Kansas ranges between 3.10 percent and 5.70 percent depending on your income level.
How much do I need to earn to live in Kansas?
Overall, the cost of living in Kansas is below the national average. Living here has affordable rates on everything from housing to food. But, how much do you actually need to make to afford the cost of living here?
Since experts recommend you only spend 30 percent of your gross monthly income on rent, you’d need to make $3,380 a month or $40,560 annually to afford Kansas’ average rent of $1,014. Average salaries here range from $22,063 to $101,222, and a single person paying for only their expenses needs to make a minimum gross annual income of $34,073. If you work in a lower-paying field, you may need to spend more than 30 percent of your monthly income on rent. But, with a median household income of $61,091, family households or renters with roommates are better able to make things work.
If you’re unsure what you can comfortably afford to pay in rent, use our rent calculator.
Living in Kansas
Whether you want a vibrant city or a laidback small town, Kansas has a diverse range of places and price points to choose from when deciding where to live. Overall, though, the cost of living in Kansas is accessible for many different people and budgets. And, no matter where you live in Kansas, you can enjoy access to its delectable local cuisine and natural beauty.
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The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of August 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
If you’re considering buying a house in Georgia, you’re embarking on an exciting journey towards homeownership in one of the most charming states in the U.S. Whether you’re drawn to a condo in Alpharetta, a historic house in Macon, or the scenic beauty of the Blue Ridge Mountains, Georgia offers a diverse range of real estate options to suit every lifestyle. However, for first-time homebuyers and homeowners, the process can be exhilarating and complex, involving crucial steps such as property research, financial preparation, and navigating legal intricacies.
This Redfin guide will shed light on the essential aspects of buying a home in Georgia, providing valuable insights to ensure a smooth homebuying experience in the Peach State.
What’s it like to live in Georgia?
One of the highlights of residing in the Peach State is its pleasant climate, with warm summers and mild winters, making it ideal for outdoor activities year-round. Whether exploring the pristine beaches along the Atlantic coast, hiking through the picturesque North Georgia mountains, or strolling through the charming streets of Savannah with its historic architecture and oak-lined squares, Georgia’s natural beauty never fails to impress. Moreover, the state boasts a rich cultural heritage, evident in its music scene, culinary delights like southern barbecues and peaches, and numerous annual festivals celebrating everything from arts to film and food. Check out this article to learn more about the pros and cons of living in Georgia.
Georgia housing market insights
The Georgia housing market has experienced some notable recent changes in demand and supply. While housing demand experienced a slight decrease this year, the number of available homes has declined by 3.6% year-over-year. Despite this shifting demand, the median sale price has continued its steady ascent, increasing by 1.3% compared to the previous year. The effects of these price increases are particularly evident in cities such as Calhoun, Redan, and LaGrange, which are among the metros with the fastest-growing prices.
Rising mortgage rates have played a significant role in deterring some buyers from entering the market. Nevertheless, several cities in Georgia continue to maintain a competitive edge. North Decatur, Cumming, and Sugar Hill, in particular, have remained at the forefront, holding their positions as the top three competitive cities in the state.
Finding your perfect location in Georgia
Georgia is diverse, offering a wide array of living environments, from bustling urban centers to tranquil rural communities and scenic coastal areas. Each region has a unique charm, amenities, and proximity to various attractions and services. You’ll want to choose the city that aligns with your preferences, such as access to quality schools, proximity to work, recreational opportunities, and cultural activities. Additionally, considering factors like home trends and what neighborhood you’ll live in can significantly impact your long-term investment and satisfaction with your home.
Using tools like a cost of living calculator will aid you on your journey and point you to which cities align with your needs. Here are five of the most popular cities in Georgia to give you a head start.
#1: Columbus, GA
Median home price: $207,000 Columbus, GA homes for sale
Along the scenic Chattahoochee River, Columbus provides residents ample opportunities to enjoy outdoor activities such as kayaking, fishing, and biking along the RiverWalk. The cost of living in Columbus is 9% lower than the national average, making Columbus a great city to check out. The city boasts a vibrant arts scene, with the RiverCenter for the Performing Arts hosting various cultural events and performances throughout the year. Columbus is also home to Fort Benning, one of the largest military installations in the United States.
#2: Augusta, GA
Median home price: $211,950 Augusta, GA homes for sale
Augusta is perhaps best known for hosting the prestigious Masters Tournament, attracting golf enthusiasts worldwide. The city’s picturesque landscapes, including the Savannah River and the Augusta Canal, provide outdoor activities like boating, fishing, and hiking opportunities. Explore some of Augusta’s charming suburbs, where residents can explore historical landmarks such as the Augusta Museum of History. The city’s revitalized downtown area, Augusta’s Broad Street, features a vibrant arts and entertainment scene, with art galleries, theaters, and local eateries showcasing the region’s diverse flavors.
#3: Savannah, GA
Median home price: $333,990 Savannah, GA homes for sale
Moving to Savannah, you’ll be surrounded by well-preserved antebellum architecture and oak-lined streets. The city’s rich cultural heritage is celebrated through various festivals, like the Savannah Music Festival and the Savannah Film Festival, adding to its lively arts and entertainment scene. With its proximity to the Atlantic Ocean, residents can indulge in beachside relaxation and water activities at nearby Tybee Island. The cost of living in Savannah is 9% lower than the national average, making Savannah a good place to live. The city’s warm climate makes outdoor exploration a joy, whether strolling through Forsyth Park, visiting the Mercer-Williams House, or taking a riverboat tour along the Savannah River.
#4: Athens, GA
Median home price: $341,000 Athens, GA homes for sale
As the home of the University of Georgia, Athens exudes a vibrant college-town atmosphere, with a dynamic music scene that has earned it the title “The Classic City of the South.” The city’s downtown area is brimming with quirky shops, local eateries, and live music venues, making it a hub for creativity and entertainment. Residents can explore cultural gems like the Georgia Museum of Art and the Georgia Theatre, contributing to the city’s rich cultural landscape. Athens’ lush green spaces, such as the State Botanical Garden and Sandy Creek Park, allow outdoor enthusiasts to enjoy nature and recreational activities. The cost of living in Athens is 7% lower than in Atlanta, and if this city interests you, check out some of the best Athens suburbs to consider living in.
#5: Atlanta, GA
Median home price: $439,200 Atlanta, GA homes for sale
As Georgia’s bustling cultural and economic capital, moving to Atlanta boasts a thriving arts scene, with renowned institutions like the High Museum of Art and the Atlanta Symphony Orchestra. The city’s culinary landscape is equally diverse, featuring restaurants offering global cuisines and Southern delights. Atlanta’s rich history is evident in its iconic landmarks, such as the Martin Luther King Jr. National Historic Site and the Atlanta History Center. Additionally, if you’re looking for affordable Atlanta suburbs, there are several options for a more budget-friendly location.
The homebuying process in Georgia
After finding your ideal neighborhood, you’re ready to jump into the homebuying process.
1. Prioritize your finances
Before embarking on this significant investment, assessing your financial health, understanding your budget, and determining how much you can afford is essential. This involves reviewing and increasing your credit score, as it greatly impacts your eligibility for a mortgage and the interest rates you may qualify for. Preparing the necessary documents, such as bank statements, tax returns, and pay stubs, streamlines the mortgage application process and increases your credibility as a serious buyer.
There are various programs available for first-time homebuyers in Georgia, including the Georgia Dream Homeownership Program – CHOICE, which can assist with up to $7,500 in down payment assistance.
2. Get pre-approved from a lender
Getting pre-approved from a lender is crucial when buying a house in Georgia, as it offers several significant advantages. Pre-approval involves a thorough evaluation of your financial situation by a lender, which clearly explains how much you can borrow and what type of mortgage you qualify for. Armed with this information, you can confidently search for homes within your budget, saving time and avoiding the disappointment of falling in love with a property that may be out of reach.
3. Connect with a local agent in Georgia
A local agent possesses invaluable knowledge of the Georgia housing market, including current trends, neighborhood insights, and property values. They can guide you in identifying areas that align with your preferences and budget, providing personalized recommendations tailored to your needs. So whether you need a real estate agent in Savannah or an agent in Atlanta, they’re here to help.
4. Start touring homes
During home tours, pay attention to the house’s interior and exterior features. Look for structural integrity, signs of maintenance or repairs, and the property’s overall condition. Consider the layout and flow of the rooms, ensuring they suit your lifestyle and plans. Assess the natural lighting, storage space, and functionality of essential amenities like the kitchen and bathrooms. Take note of the neighborhood’s proximity to schools, work, shopping centers, and other vital amenities.
5. Make the offer
When making an offer, it is essential to consider the property’s fair market value based on recent comparable sales and the current state of the real estate market in the area. Your real estate agent can provide valuable insights and guidance to help you formulate a competitive and reasonable offer. Once you’ve decided on the offer price, you’ll draft a written purchase agreement outlining the terms and conditions, such as contingencies, closing date, and financing details. This offer is then submitted to the seller or agent, who can accept, reject, or counteroffer.
6. Close on the house
The closing process involves a series of essential tasks, including signing legal documents, settling financial transactions, and disbursing funds. Buyers typically can review and sign various closing documents, including the mortgage agreement, title deed, and other necessary paperwork. Any outstanding fees, such as closing costs and property taxes, are settled during the closing, and the final purchase price is paid.
For more information about each step of the homebuying process, check out Redfin’s First-Time Homebuyer Guide.
Factors to consider when buying a house in Georgia
When buying a house in Georgia, there are several unique factors to consider due to the state’s diverse landscape, climate, and cultural nuances. Here are some unique aspects to keep in mind:
Natural disasters
Georgia experiences weather-related events, including hurricanes, tornadoes, and flooding, particularly in coastal and low-lying areas. Understanding the potential risks of these natural disasters can help you make informed decisions about the location and safety of your chosen property. Being well-informed about these natural disaster risks ensures that you can take necessary precautions and make sound decisions to protect your investment and ensure your family’s safety and well-being in your new home in Georgia.
Historic preservation
When buying a house in Georgia, it’s essential to be aware of the state’s historic preservation laws, especially in areas with rich historical architecture and cultural significance. Georgia takes pride in its historical heritage, and many cities, such as Savannah and Atlanta, have implemented strict preservation regulations to protect historic properties and districts. These laws may restrict alterations, renovations, and demolitions of a historic home to maintain their architectural integrity and historical value. As a potential homebuyer, understanding these preservation laws is crucial, as it may impact your ability to make certain modifications to the property.
Humid subtropical climate
For those considering buying a house in Georgia, it’s essential to be mindful of the state’s humid subtropical climate. Georgia experiences hot and humid summers, often exceeding 90 degrees Fahrenheit and high humidity. Winters are generally mild, but occasional cold snaps can bring freezing temperatures. Additionally, homeowners should consider landscaping choices that can withstand the heat and humidity. Mold and mildew prevention become essential concerns, and proper ventilation and insulation should be prioritized in the home.
Home insurance rates
Coastal regions, such as Savannah, Brunswick, and St. Simons Island, are particularly vulnerable to potential damage from hurricanes and storm surges. As a result, insurance providers often charge higher premiums to cover these risks. Homebuyers in these areas should carefully research and compare home insurance from different providers to find the most suitable coverage that balances protection and affordability. Additionally, homes located in flood zones may require separate flood insurance, adding to the overall insurance costs.
Buying a house in Georgia: Bottom line
Buying a house in Georgia offers potential homeowners a wealth of opportunities and experiences. With its diverse landscapes, vibrant cities, and rich cultural heritage, the state presents a range of choices to suit varying lifestyles and preferences. It’s important to be well-prepared, considering factors like the humid subtropical climate, natural disaster risks, and potentially higher insurance rates. By staying informed and connecting with local experts, buyers can confidently navigate the homebuying journey.
Buying a house in Georgia FAQ
What are the requirements for buying a home in Georgia?
Having a good credit score, typically around 620 or higher for conventional loans, is essential. It’s necessary to demonstrate stable income and employment to prove mortgage repayment capability, with lenders evaluating the debt-to-income ratio for manageable monthly payments. While the down payment requirement varies based on lender and loan type, it remains a crucial component. Additionally, obtaining pre-approval is vital for homebuying in Georgia, as it indicates readiness for securing a loan. To make an informed decision, conducting a property appraisal and home inspection is advisable to assess the property’s value and condition thoroughly.
What is the average down payment on a house in Georgia?
The average down payment on a house in Georgia typically ranges from 3% to 20% of the home’s purchase price. Conventional loans often require a down payment of around 5% to 20%, while government-backed loans like FHA loans may have lower down payment options, sometimes as low as 3.5% for qualified borrowers. It’s essential to consult with a mortgage lender or a real estate professional to determine the most suitable down payment amount based on your financial situation and the specific loan program you may qualify for.
How much does it cost to buy a house in Georgia
The cost of buying a house in Georgia can vary widely depending on various factors, such as the location, size, condition, and property features. The median sale price is $375,500 which is lower than the national median. However, home prices can range from below the median for smaller homes in more affordable areas to several million dollars for larger homes or properties in upscale neighborhoods. Factors like real estate market conditions, interest rates, and demand for housing can also influence home prices. Apart from the purchase price, buyers should also consider additional costs such as closing costs, property taxes, home insurance, and potential homeowner association fees.
At the beginning of 2020, no one expected the United States would be in the position it is in today, including me. With social distancing the new normal, many people are still hoping to buy a home; now they’re stuck wondering if they should purchase a home right now or wait out the pandemic.
As with most financial questions, the answer depends on many factors. You have control over some of these things. Other aspects are out of your hands. People that consciously examine their current position and the risks can make a somewhat educated decision.
My wife and I started the process of buying our current home and selling our old home in December 2019 before the pandemic was on anyone’s radar. By the time we ended up closing on both homes at the end of February 2020, COVID-19 had just started spooking the United States markets.
I’ve included our experiences and personal thoughts to help you get a feel for what real buyers and sellers are going through.
What’s Ahead:
What are the pros of buying a home during the pandemic?
There is lower competition for homes due to fewer people actively shopping and buying homes right now.
Mortgage interest rates may be near all-time lows resulting in lower monthly mortgage payments.
You have the potential to get a better deal on a home’s price than a few months ago if a seller needs to sell or wants to put a house behind them.
What are the cons of buying a home during the pandemic?
You risk contracting COVID-19 every time you leave your current home.
Housing inventory may be lower as some sellers wait until this passes to list their homes or they don’t want people coming through their house.
You may not be able to move through the home buying and mortgage process smoothly.
Housing prices may decrease in the near future.
Mortgage lenders may have stricter lending guidelines that disqualify you when you may have qualified for a mortgage prior to the pandemic.
You may have a harder time finding top-notch home inspectors, appraisers, and other professionals during the pandemic.
Moving may be more difficult as friends and family probably won’t volunteer to help due to social distancing guidelines.
Mortgage lenders to consider if you do decide to buy a home during the COVID-19 pandemic
For well-prepared individuals with a strong financial position, now may be the perfect time to buy the home of your dreams. You’ll have to hope the right home comes on the market and you can get a good deal on it. If everything comes together, it is still possible to buy a home during the pandemic in most cases.
When you’re ready to start mortgage shopping, make sure you check out Credible to help figure out if you’re getting a good deal.
Credible helps you shop multiple mortgage rates at once. It only takes three minutes to enter some basic information and get pre-approved for a loan. You’ll then see personalized rate quotes from a variety of lenders.
Credible doesn’t do a hard pull of your credit score to qualify you. That means you won’t have to worry about your score dropping while you’re preparing to buy a house. Credible also doesn’t provide your information to lenders, so the pre-qualification process is between you and Credible.
Credible Operations, Inc. NMLS# 1681276, “Credible.” Not available in all states. www.nmlsconsumeraccess.org.”
Credible Credit Disclosure – Requesting prequalified rates on Credible is free and doesn’t affect your credit score. However, applying for or closing a loan will involve a hard credit pull that impacts your credit score and closing a loan will result in costs to you.
Why some people are concerned about buying a home during the pandemic
People have good reason to be concerned about buying a home during the COVID-19 pandemic. This disease has drastically changed how the United States works.
The buying process increases the risk of COVID-19 transmission
If you fear for your health, buying a home may not be a good idea right now. The process of buying a home typically involves many in-person interactions.
While you may be able to mitigate some of these interactions with social distancing, being careful, and washing your hands, it may not be enough. The more you leave your home and interact with others, the higher your chance of catching the virus is.
In particular, you usually meet with a real estate agent in person. You tour many homes you’re interested in, most of which have people that live in them.
You may want to attend any home or pest inspections in person to understand exactly what you’re buying and to see any potential problems firsthand. Once everything with the sale is wrapped up and ready to sign, you have to go to a closing and sign paperwork with a closing agent.
There are other steps in between that could also expose you to the virus, but these are the most essential. You could take virtual home tours and some states may allow for virtual closings. Even so, very few people would buy a home without setting foot in it first. I don’t blame them.
The mortgage lending process is facing challenging times
Getting a mortgage is usually a predictable process. You apply for a mortgage and give the lender the requested paperwork. This paperwork helps the lender feel confident you can afford the mortgage. Things aren’t as simple today as they once were, though.
Mortgage rates are all over the place
Lenders tend to offer fairly competitive rates in a stable environment. Some lenders may offer better rates than others, but the difference between lenders is normally relatively small.
Our original mortgage process was straightforward without any problems. After we closed on our home, mortgage rates dropped fast. We decided to refinance our mortgage right after closing on our home.
For the refinance, finding a lender with a great rate was a bit harder than we thought it would be. We had to do a lot of shopping around to find the best rates as some lenders had rates that were much higher than others were offering.
Rate quotes were as much as 2% different between lenders over the course of a couple of weeks. This is insane in a stable mortgage market.
Some mortgage processes have become more strict
Underwriters review the information you’ve submitted to see if you qualify for the loan. They look to see if they need any additional information and eventually approve your loan for closing. Usually, this is straightforward and borrowers know what to expect. Today, requirements may be changing.
Mortgage companies have started altering their requirements to take out a mortgage. Chase stated back in April that buyers of certain home loan programs will have to have a credit score of 700 and a 20% down payment to get certain types of mortgages. And many lenders have followed their lead.
We could tell the process was getting stricter when we refinanced in March, as well. To our surprise, one lender would have required us to sign an affidavit saying we hadn’t lost our jobs and our income situation hadn’t changed at closing.
I didn’t have to sign this paperwork when we originally closed on our purchase loan. Lenders seemed like they were taking a more in-depth look at the mortgages they had in process, and this was in mid-March. As this crisis continues to drag on, lenders may get even more stringent.
Slower processes could challenge your closing timeline
Unfortunately, coronavirus has made the mortgage process more difficult. Due to the virus, interest rates on mortgages have generally dropped. This is great news for your monthly payment, but it also means mortgage lenders are much busier than usual processing refinance requests.
This can slow down the mortgage approval process because lenders don’t necessarily have enough staff to handle the higher refinance demand. To make matters worse, COVID-19 has forced many employees to work from home. At home, the employees may be less efficient and not have the tools they need to complete their jobs as quickly.
The lender usually orders an appraisal to make sure the home isn’t worth less than you’re paying for it, too. This requires an appraiser to visit the home and complete an appraisal report. The virus has posed challenges for these appraisers.
Many home sellers may not want to let a stranger enter their home to assess its value. There is no telling if the appraiser has the virus or not. Even if you can get an appraiser, they may have to take extra precautions which could slow down the process.
If a mortgage lender can’t complete the entire mortgage process in time, it could delay your closing on your home. This could result in penalties or your contract falling through altogether.
So, should you buy a home during the pandemic?
Buying a home during the pandemic could work out in your favor. If you have your finances in great shape, you could take advantage of the down market during these tough times.
Get a good deal on houses that must sell
Some people absolutely must sell their homes right now. They may have already bought another home elsewhere and can’t afford to make two mortgage payments for long. Others may have had to relocate for work and don’t want to wait to see if COVID-19 drags their old house’s value down.
In these cases, you can test the willingness of the sellers to wait out the COVID-19 pandemic. Some sellers may not be willing to budge on price. Other sellers may drastically reduce their selling price to sell and avoid future uncertainty. If you’re not picky about getting a particular house, you could get a great deal.
If our prior house didn’t sell before the pandemic took hold, this very well could have been our family. It could have resulted in us getting a much lower price than we ended up selling our home for, or us holding on to our home for a much longer period to get the price we wanted. Either way, it would have cost us money.
Avoid homes you won’t own for long
Be careful about what type of home you buy during the pandemic. Now is not the time for most people to buy starter homes that they plan to move out of in a few quick years. If housing prices drop, you may be stuck in the home.
Buying long-term or forever homes may work out fine
Buyers purchasing a home they plan to spend a significant amount of time in, such as a decade or more, should hopefully be able to weather any negative short term impacts the housing market faces. Nothing is guaranteed, though.
Why shouldn’t you buy a home during the pandemic?
Buying a home during the pandemic isn’t a good move for everyone. In fact, you may be better off waiting to buy.
Limited housing supply
As a home seller, we’re delighted we sold when we did. If we still had our home on the market after the COVID-19 pandemic took hold and we still lived there, we would not have been comfortable with others coming through our home to view it.
If we hadn’t put our house on the market already, chances are we would have waited until after the pandemic was over to list our home. It would have put our mind at ease that we wouldn’t have to find another place to live while the world is in lockdown should we be lucky enough to sell.
Other potential sellers are facing similar dilemmas. This could result in fewer houses being put on the market, resulting in a tighter home supply during a typically busy spring market.
Housing prices could decline
No one knows how the housing market will end up on the other side of this pandemic. It could result in lower housing prices in the future. This result could be temporary or it could last for years.
Even if you think you’re getting a deal today, prices may decrease even more before the pandemic is over. Without a sizable down payment and equity in your home, you may end up underwater and be unable to sell it or move.
As a home buyer, we’re happy with our purchase. Even so, part of me wonders if we’ve now bought at a peak in prices. We are very aware we might see housing prices decrease in the future.
This doesn’t worry us as much as it may bother others. We plan to live in this house for at least 10 years. It has plenty of space and is in a great neighborhood with good schools. If this was a starter home, we would be very concerned about our ability to resell it for a profit in a few years.
You could lose the income you use to pay your mortgage
Another reason to avoid buying a home right now is uncertainty about your job. Those that need a paycheck every two weeks to make their mortgage payment could end up getting foreclosed on if they get furloughed or laid off.
Unless you have substantial financial reserves that could help make mortgage payments until you find a new job, buying a home right now probably isn’t a good idea. Instead, you may be better off focusing on building reserves.
Buying a home would exhaust your cash reserves
Most people save for years to be able to afford a down payment for a home. When they close on their home, some people use almost all of their available cash to do so. This leaves them with no emergency fund to speak of.
If this is you, don’t buy a home right now. If anything bad happens after you purchase your home, it could put you in financial ruin. Losing a job could result in foreclosure. A large home maintenance item that suddenly needs to be taken care of, such as a damaged sewer line, could put you into debt.
Instead, wait until you have enough money for a down payment while still keeping a cash reserve after you close on your home. Something unexpected always pops up.
When we bought our first home, we quickly found out our air conditioner needed to be replaced. That was an unexpected $3,000 expense on a $79,000 home, but it could have been much more if we needed a new roof.
You may not be able to sell your current home
If you would have to sell your current home to afford your next home, now isn’t a great time to buy. Whether you want to move to a different area or move up to a nicer home, there is no guarantee your current home will sell in time.
If it doesn’t sell and your contract to buy falls apart, you may lose your earnest money and any other fees you paid throughout the process. The other potential issue could be selling your home for much less than you’d otherwise get if you weren’t crunched for time. Either way, you could lose out substantially if things don’t work out as anticipated.
Summary
Buying a home could be a good move for you if your finances are in order, you’re buying a home for the long haul and the right house comes along.
However, those with an uncertain future or just enough funds to barely make a down payment on a house would likely be better off waiting until there is more certainty before buying. You may not get as good of a deal, though.
The Jefferson Avenue commercial district in Buffalo, New York, is anchored by a supermarket.
There are dozens of other businesses and services along the 12-block corridor — a couple of bank branches, a library, a coffee shop, gas stations, a small plaza with a dollar store and a primary care clinic and a business incubator for entrepreneurs of color.
But Tops Friendly Markets, the only grocery store on Buffalo’s vast East Side, is the center of activity. More than just a place to buy food, pick up medications and use an ATM, the store is a communal gathering space in a predominantly Black neighborhood that, for generations, has been segregated, isolated and disenfranchised from the wealthier — and whiter — parts of the city.
Which explains how it came to be the site of a mass shooting on a spring day in May of last year. On that Saturday, a gunman, who lived 200 miles away in another part of the state, drove to Jefferson Avenue and went into Tops, and in just a few minutes killed 10 people, injured three and inflicted mass trauma across the community.
It is a scenario that has sadly, and repeatedly, played out in other parts of the country that have experienced mass shootings. But this one came with a twist: The gunman’s intention was to kill as many Black people as possible.
To achieve that, he specifically targeted a ZIP code with one of the highest percentages of Black residents in New York state. All 10 who died that day were Black.
“The mere fact that someone can research, ‘Where will the greatest number of Black people be … on a Saturday morning,’ that’s not by chance,” said Franchelle Parker, a community organizer and executive director of Open Buffalo, a nonprofit focused on racial, economic and ecological justice. “That’s not a mistake. It’s a community that’s been deeply segregated for decades.”
The day of the shooting, Parker, who grew up in nearby Niagara Falls, was driving to Tops, where she planned to buy a donut and an unsweetened iced tea before heading into the Open Buffalo office, which is located a block away from Tops. The mother of two had intended to complete the mundane task of cleaning up her desk — “old coffee cups and stuff” — after a busy week.
She saw the news on Twitter and didn’t know if she should keep driving to Jefferson Avenue or turn around and go back home. She eventually picked the latter.
When she showed up the next day, there were thousands of people grieving in the streets. “The only way that I could explain my feeling, it was almost like watching an old war movie when a bomb had gone off and someone’s in, like, shell shock. That’s how it felt,” said Parker, vividly recounting the community’s collective trauma in a meeting room tucked inside of Open Buffalo’s second-story office on Jefferson Avenue.
Almost immediately following the May 14, 2022, massacre, which was the second-deadliest mass shooting in the United States last year, conversations locally and nationally turned to the harsh realities of the East Side and how long-standing factors that affect the daily life of residents — racism, poverty and inequity — made the community an ideal target for a white supremacist.
Now, more than a year after the tragedy, there is growing concern that not enough is being done fast enough to begin to dismantle those factors. And amid those conversations, there are mounting calls for the banking industry — whose historical policies and practices helped cement the racial segregation and disinvestment that ultimately shaped the East Side — to leverage its collective power and influence to band together in an effort to create systemic change.
The ideas about how banks should support the East Side and better embed themselves in the neighborhood vary by people and organizations. But the basic argument is the same: Banks, in their role as financiers and because of the industry’s history of lending discrimination, are obligated to bring forth economic prosperity in disinvested communities like the East Side.
I know banks are often looked upon sort of like a panacea, but I don’t particularly see it that way. I think others have a role to play in all of this.
Chiwuike Owunwanne, corporate responsibility officer at KeyBank
“Banks have been very good at providing charitable contributions to the Black community. They get an ‘A’ for that,” said The Rev. George Nicholas, an East Side pastor who is also CEO of the Buffalo Center for Health Equity, a four-year-old enterprise focused on racial, geographic and economic health disparities. “But doing the things that banks can do in terms of being a catalyst for revitalization and investment in this community, they have not done that.”
To be sure, banks’ ability to reverse the course of the community isn’t guaranteed — and there is no formula to determine how much accountability they should hold to fix deeply entrenched problems like racism. Several Buffalo-area bankers said that while the Tops shooting heightened the urgency to help the East Side, the industry itself cannot be the sole driver of change.
“There are a lot of institutions … that can certainly play a part in reversing the challenges that we see today,” said Chiwuike “Chi-Chi” Owunwanne, a corporate responsibility officer at KeyBank, the second-largest bank by deposits in Buffalo. “I know banks are often looked upon sort of like a panacea, but I don’t particularly see it that way. I think others have a role to play in all of this.”
A long history of segregation
How the East Side — and the Tops store on Jefferson Avenue — became the destination for a racially motivated mass murderer is a story about racism, segregation and disinvestment.
Even as it bears the nickname “the city of good neighbors,” Buffalo has long been one of the most racially segregated cities in the United States. Of the 114,965 residents who live on the East Side, 59% are Black, according to data from the 2021 U.S. Census American Community Survey. The percentage is even higher in the 14208 ZIP code, where the Tops store is located. In that ZIP code, among 11,029 total residents, nearly 76% are Black, the census data shows.
The city’s path toward racial segregation started in the early 20th century when a small number of job-seeking Black Americans migrated north to Buffalo, a former steel and auto manufacturing hub at the far northwestern end of New York state. Initially, they moved into the same neighborhoods as many of the city’s poorer immigrants and lived just east of what is today the city’s downtown district. As the number of Blacks arriving in Buffalo swelled in the 1940s, they were increasingly confronted with various housing challenges, including racist zoning laws and restrictive deed covenants that kept them from buying homes in more affluent white areas.
Black Buffalonians also faced housing discrimination in the form of redlining, the practice of restricting the flow of capital into minority communities. In 1933, as the Great Depression roiled the economy, a temporary federal agency known as the Home Owners’ Loan Corporation used government bonds to buy out and refinance mortgages of properties that were facing or already in foreclosure. The point was to try to stabilize the nation’s real estate market.
As part of its program, HOLC created maps of American cities, including Buffalo, that used a color coding scheme — green, blue, yellow and red — to convey the perceived riskiness of making loans in certain neighborhoods. Green was considered minimally risky; other areas that were largely populated by immigrant, Black or Latino residents were labeled red and thus determined to be “hazardous.”
“The goal was to free up mortgage capital by going to cities and giving banks a way to unload mortgages, so they could turn around and make more mortgage loans,” said Jason Richardson, senior director of research at the National Community Reinvestment Coalition, an association of more than 750 community-based organizations that advocates for fair lending. “It was kind of a radical concept and it has evolved over the decades into our modern mortgage finance system.”
The Federal Housing Administration, which was established as a permanent agency in 1934, used similar methods to map urban areas and labeled neighborhoods from “A” to “D,” with “A” considered to be the most financially stable and “D” considered the least. Neighborhoods that were largely Black, even relatively stable ones, were put in the “D” category.
The result was that banks, which wanted to be able to sell mortgage loans to the FHA, were largely dissuaded from making loans in “risky” areas. And Buffalo’s East Side, where the majority of Blacks were settling, was deemed risky. Unable to get loans, Blacks couldn’t buy homes, start businesses or build equity. At the same time, large industrial factories on the East Side were closing or moving away, limiting job opportunities and contributing to rising poverty levels.
“Today what we’re left with is the residue of this process where we’ve enshrined … a pattern of economic segregation that favors neighborhoods that had fewer Black people in them and generally ignores neighborhoods that had African Americans living in them,” Richardson said.
Case in point: Research by the National Community Reinvestment Coalition shows that three-quarters of neighborhoods that were once redlined are low- to moderate-income neighborhoods today, and two-thirds of them are majority minority communities.
Adding to the division between Blacks and whites in Buffalo was the construction of a highway called the Kensington Expressway. Built during the 1960s, the below-grade, limited-access highway proved to be a speedy way for suburban workers to get to their downtown jobs. But its construction cut off the already-segregated East Side even more from other parts of the city, displacing residents, devaluing houses and destroying neighborhoods and small businesses.
As a result of those factors and more, many Black residents have become “trapped” on the East Side, according to Dr. Henry Louis Taylor Jr., a professor of urban and regional planning at the University at Buffalo. In 1987, Taylor founded the UB Center for Urban Studies, a research, neighborhood planning and community development institute that works on eliminating inequality in cities and metropolitan regions. In September 2021, eight months before the Tops shooting, the Center for Urban Studies published a report that compared the state of Black Buffalo in 1990 to present-day conditions. The conclusion: Nothing had changed for Blacks over 31 years.
As of 2019, the Black unemployment rate was 11%, the average household income was $42,000 and about 35% of Blacks had incomes that fell below the poverty line, the report said. It also noted that just 32% of Blacks own their homes and that most Blacks in the area live on the East Side.
“Those figures remain virtually unchanged while the actual, physical conditions that existed inside of the community worsened,” Taylor told American Banker in an interview in his sun-filled office at the center, located on the University at Buffalo’s city campus. “When we looked upstream to see what was causing it, it was clear: It was systemic, structural racism.”
Banks’ moral obligations
As the East Side struggled over the decades with rampant poverty, dilapidated housing, vacant lots and disintegrating infrastructure, banks kept a physical presence in the community, albeit a shrinking one. In mid-2000, there were at least 20 bank branches scattered across the East Side, but by mid-2022, the number had fallen to around 14, according to the Federal Deposit Insurance Corp.’s deposit market share data. The 14 include four new branches that have opened since early 2019 — Northwest Bank, KeyBank, Evans Bank and BankOnBuffalo.
The first two branches, operated by Northwest in Columbus, Ohio, and KeyBank, the banking subsidiary of KeyCorp in Cleveland, were requirements of community benefits agreements negotiated between each bank and the National Community Reinvestment Coalition. In both cases, Northwest and KeyBank agreed to open an office in an underserved community.
Evans Bank opened its first East Side branch in the fall of 2021. The office is located in the basement of an $84 million affordable senior housing building that was financed by Evans, a $2.1 billion-asset community bank headquartered south of Buffalo in Angola, New York.
Banks have been very good at providing charitable contributions to the Black community. They get an ‘A’ for that. But doing the things that banks can do in terms of being a catalyst for revitalization and investment in this community, they have not done that.
The Rev. George Nicholas, an East Side pastor who is also CEO of the Buffalo Center for Health Equity
On the community and economic development front, banks have had varying levels of participation. Buffalo-based M&T Bank, which holds a whopping 64% of all deposits in the Buffalo market and is one of the largest private employers in the region, has made consistent investments in the East Side by supporting Westminster Community Charter School, a kindergarten through eighth-grade school, and the Buffalo Promise Neighborhood, a nonprofit organization focused on improving access to education in the city’s 14215 ZIP code.
Currently, Buffalo Promise Neighborhood operates four schools. In addition to Westminster, it runs Highgate Heights Elementary, also K-8, as well as two academies that serve children ages six weeks through pre-kindergarten. Twelve M&T employees are dedicated to the program, according to the Buffalo Promise Neighborhood website. The bank has invested $31.5 million into the program since its 2010 launch, a spokesperson said.
Other banks are making contributions in other ways. In addition to the Jefferson Avenue branch and as part of its community benefits plan, Northwest Bank, a $14.2 billion-asset bank, supports a financial education center through a partnership with Belmont Housing Resources of Western New York. Meanwhile, the $198 billion-asset KeyBank gave $30 million for bridge and construction financing for Northland Workforce Training Center, a $100 million redevelopment project at a former manufacturing complex on the East Side that was partially funded by the state.
BankOnBuffalo’s East Side branch is located inside the center, which offers KeyBank training in advanced manufacturing and clean energy technology careers. A subsidiary of $5.6 billion-asset CNB Financial in Clearfield, Pennsylvania, BankOnBuffalo’s office opened a month after the shooting. The timing was coincidental, but important, said Michael Noah, president of BankOnBuffalo.
“I think it just cemented the point that this is a place we need to be, to be able to be part of these communities and this community specifically, and be able to build this community up,” Noah said.
In terms of public-private collaboration, some banks have been involved in a deeper way. In 2019, New York state, which had already been pouring $1 billion into Buffalo to help revitalize the economy, announced a $65 million economic development fund for the East Side. The initiative is focused on stabilizing neighborhoods, increasing homeownership, redeveloping commercial corridors including Jefferson Avenue, improving historical assets, expanding workforce training and development and supporting small businesses and entrepreneurship.
In conjunction with the funding, a public-private partnership called East Side Avenues was created to provide capital and organizational support to the projects happening along four East Side commercial corridors. Six banks — Charlotte, North Carolina-based Bank of America, the second-largest bank in the nation with $2.5 trillion of assets; M&T, which has $203 billion of assets; KeyBank; Warsaw, New York-based Five Star Bank, which has about $6 billion of assets; Northwest and Evans — are among the 14 private and philanthropic organizations that pledged a combined $8.4 million to pay for five years’ worth of operational support, governance and finance, fundraising and technical assistance to support the nonprofits doing the work.
Laura Quebral, director of the University at Buffalo Regional Institute, which is managing East Side Avenues, said the banks were the first corporations to step up to the request for help, and since then have provided loans and other products and education to keep the program moving.
Their participation “is a signal to the community that banks cared and were invested and were willing to collaborate around something,” Quebral said. “Being at the table was so meaningful.”
Richard Hamister is Northwest’s New York regional president and former co-chair of East Side Avenues. Hamister, who is based in Buffalo, said banks are a “community asset” that have a responsibility to lift up all communities, including those where conditions have arisen that allow it to be a target of racism like the East Side.
“We operate under federal charters, so we have an obligation to the community to not only provide products and services they need but also support when you go through a tragedy like that,” Hamister said. “We also have a moral obligation to try to help when things are broken … and to do what we can. We can’t fix everything, but we’ve got to fix our piece and try to help where we can.”
In the wake of a tragedy
After the massacre, there was a flurry of activity within banks and other organizations, local and out-of-town, to respond to the immediate needs of East Side residents. With the community’s only supermarket closed indefinitely, much of the response centered around food collection and distribution. Three of M&T’s five East Side branches, including the Jefferson Avenue branch across the street from Tops, became food distribution sites for weeks after the shooting. On two consecutive Fridays, Northwest provided around 200 free lunches to the community, using a neighborhood caterer who is also the bank’s customer. And BankOnBuffalo collected employee donations that amounted to more than 20 boxes of toiletries and other items that were distributed to a nonprofit.
At the same time, M&T, KeyBank and other banks began financial donations to organizations that could support the immediate needs of the community. KeyBank provided a van that delivered food and took people to nearby grocery stores. Providence, Rhode Island-based Citizens Financial Group, whose ATM inside Tops was inaccessible during the store’s temporary closure, installed a fee-free ATM near a community center located about a half-mile north of Tops, and later put a permanent ATM inside the center that remains there today. And M&T rolled out a short-term loan program to provide capital to East Side small-business owners.
One of the funds that benefited from banks’ support was the Buffalo Together Community Response Fund, which has raised $6.2 million to address the long-term needs of the East Side.
Bank of America and Evans Bank each donated $100,000 to the fund, whose list of major sponsors includes four other banks — JPMorgan Chase, Citigroup, M&T and KeyBank. Thomas Beauford Jr., a former banker who is co-chair of the response fund, said banks, by and large, directed their resources into organizations where the dollars would have an immediate impact.
“Banks said, ‘Hey, you know … it doesn’t make sense for us to try to build something right now. … We will fund you in the work you’re doing,'” said Beauford, who has been president and CEO of the Buffalo Urban League since the fall of 2020. “I would say banks showed up in a big way.”
Fourteen months later, banks say they are committed to playing a positive role on the East Side. For the second year, KeyBank is sponsoring a farmers’ market on the East Side, an attempt to help fill the food desert in the community. Last fall, BankOnBuffalo launched a mobile “bank on wheels” truck that’s stationed on the East Side every Wednesday. The 34-foot-long truck, which is staffed by two people and includes an ATM and a printer to make debit cards, was in the works before the shooting, and will eventually make four stops per week around the Buffalo area.
Evans has partnered with the city of Buffalo to construct seven market-rate single family homes on vacant lots on the East Side. The relationship with the city is an example of how banks can pair up with other entities to create something meaningful and lasting, more than they might be able to do on their own, said Evans President and CEO David Nasca.
The bank has “picked areas” where it can use its resources to make a difference, Nasca said.
“I don’t think the root causes can be ameliorated” by banks alone, he said. “We can’t just grant money. It has to be within our construct of a financial institution that invests and supports the public-private partnership. … All the oars [need to be] pulling together or this doesn’t work.”
‘Little or no engagement with minorities’
All of these efforts are, of course, welcomed by the community, but there is still criticism that banks haven’t done enough to make up for their past contributions to segregating the city. And perhaps more importantly, some of that criticism centers on banks failing to do their most basic function in society — provide credit.
In 2021, the New York State Department of Financial Services issued a report about redlining in Buffalo. The regulator looked at banks and nonbank lenders and found that loans made to minorities in the Buffalo metro area made up 9.74% of total loans in Buffalo. Overall, Black residents comprise about 33% of Buffalo’s total population of more than 276,000, census data shows.
The department said its investigation showed the lower percentage was not due to “excessive denials of loan applications based on race or ethnicity,” but rather that “these companies had little or no engagement with minorities and generally made scant effort to do so.”
“The unsurprising result of this has been that few minority customers or individuals seeking homes in majority-minority neighborhoods have made loan applications … in the first instance.”
Furthermore, accusations of redlining persist today, even though the practice of discriminating in housing based on race was outlawed by the Fair Housing Act of 1968.
In 2014, Evans was accused of redlining by the New York State Attorney General, which said the community bank was specifically avoiding making mortgage loans on the East Side. The bank, which at the time had $874 million of assets, agreed to pay $825,000 to settle the case, but Nasca maintains that the charges were unfounded. He points to the fact that the bank never had a fair lending or fair housing violation, no specific incidents were ever claimed and that the bank’s Community Reinvestment Act exam never found evidence of discriminatory or illegal credit practices.
The bank has a greater presence on the East Side today, but that’s because it has grown in size, not because it is trying to make up for previous accusations of redlining, he said.
“Ten years ago, our involvement [on the East Side] certainly wasn’t what you’re seeing today,” Nasca said. “We were looking to participate more, but we were participating within our means and our reach. As we have grown, we have built more resources to be able to do more.”
Shortly after accusations were made against Evans, Five Star Bank, the banking arm of Financial Institutions in Warsaw, New York, was also accused of redlining by the state Attorney General. Five Star, which has been growing its presence in the Buffalo market for several years, wound up settling the charges for $900,000 and agreeing to open two branches in the city of Rochester.
KeyBank is currently being accused of redlining by the National Community Reinvestment Coalition. In a 2022 report, the group said that KeyBank is engaging in systemic redlining by making very few home purchase loans in certain neighborhoods where the majority of residents are Black. Buffalo is one of several cities where the bank’s mortgage lending “effectively wall[ed] out Black neighborhoods,” especially parts of the East Side, the report said.
KeyBank denied the allegations. In March, the coalition asked regulators to investigate the bank’s mortgage lending practices.
Beyond providing more credit, some community members believe that banks should be playing a larger role in addressing other needs on the East Side. And the list of needs runs the gamut from more grocery stores to safe, affordable housing to infrastructure improvements such as street and sidewalk repairs.
Alexander Wright is founder of the African Heritage Food Co-op, an initiative launched in 2016 to address the dearth of grocery store options on the East Side, where he grew up. Wright said that while banks’ philanthropic efforts are important, banks in general “need to be in a place of remediation” to fix underlying issues that the industry, as a whole, helped create. (After publication of this story, Wright left his job as CEO of the African Heritage Food Co-Op.)
Aside from charitable donations, banks should be finding more ways to work directly with East Side business owners and entrepreneurs, helping them with capital-building support along the way, Wright said. One place to start would be technical assistance by way of bank volunteers.
“Banks are always looking to volunteer. ‘Hey, want to come out and paint a fence? Want to come out and do a garden?'” Wright said. “No. Come out here and help Keshia with bookkeeping. Come out here and do QuickBooks classes for folks. Bring out tax experts. Because these are things that befuddle a lot of small businesses. Who is your marketing person? Bring that person out here. Because those are the things that are going to build the business to self-sufficiency.
“Anything short of the capacity-building … that will allow folks to rise to the occasion and be self-sufficient I think is almost a waste,” Wright added. “We don’t need them to lead the plan. What we need them to do is be in the community and [be] hearing the plan and supporting it.”
Parker, of Open Buffalo, has similar thoughts about the role that banks should play. One day, soon after the massacre, an ATM appeared down the street from Tops, next to the library that sits across the street from Parker’s office. Soon after the ATM was installed, Parker began fielding questions from area residents who were skeptical of the machine and wanted to know if it was legitimate. But Parker didn’t have any information to share with them. “There was no outreach. There was no community engagement. So I’m like, ‘Let me investigate,'” she said. “I think that’s a symptom of how investment is done in Black communities, even though it may be well-intentioned.”
As it turns out, the temporary ATM belonged to JPMorgan Chase. The megabank has had a commercial banking presence in Buffalo for years, but it didn’t operate a retail branch in the region until last year. Today it has four branches in operation and plans to open another two by the end of the year, a spokesperson said.
After the Tops shooting, the governor’s office reached out to Chase asking if the bank could help in some way, the spokesperson said in response to the skepticism. The spokesperson said that while the Chase retail brand is new to the Buffalo region, the company has been active in the market for decades by way of commercial banking, private banking, credit card lending, home lending and other businesses.
In addition to the ATM, the bank provided funding to local organizations including FeedMore Western New York, which distributes food throughout the region.
“We are committed to continuing our support for Buffalo and helping the community increase access to opportunities that build wealth and economic empowerment,” the spokesperson said in an email.
In the year since the massacre, there has been some progress by banks in terms of their interest in listening to the East Side community and learning about its needs, said Nicholas. But he hasn’t felt an air of urgency from the banking community to tackle the issues right now.
“I do experience banks being a little more open to figuring out what their role is, but it’s slow. It’s slow,” said Nicholas. The senior pastor of the Lincoln Memorial United Methodist Church, located about a mile north from Tops, Nicholas is part of a 13-member local advisory committee for the New York arm of Local Initiatives Support Coalition, or LISC. The group is focused on mobilizing resources, including banks, to address affordable housing in Western New York, specifically in the inner city, as well as training minority developers and connecting them to potential investors, Nicholas said.
Of the 13 members, seven are from banks — one each from M&T, Bank of America, BankOnBuffalo, Evans and KeyBank, and two members from Citizens Financial Group. One of the priorities of LISC NY is health equity, and the fact that banks are becoming more engaged in looking at health disparities is promising, Nicholas said. Still, they have more work to do, he said.
“I need them to think more on how to strengthen and build the economy on the East Side and provide leadership around that, not only to provide charitable things, but using sound business and banking and community development principles to say, ‘OK, if we’re going to invest in this community, these are the types of things that need to happen in this community,’ and then encourage their partners and other people they work with … to come fully in on the East Side.”
Some bankers agree with the community activists.
“Putting a branch in is great. Having a bank on wheels is great,” said Noah of BankOnBuffalo. “But if you’re not embedded in the community, listening to the community and trying to improve it, you’re not creating that wealth and creating a better lifestyle for everyone.”
What could make a substantial difference in terms of banks’ impact on the community is a combination of collaboration and leadership, said Taylor. He supports the idea of banks leading the charge on the creation of a comprehensive redevelopment and reinvestment plan for the East Side, and then investing accordingly and collaboratively through their charitable foundations.
“All of them have these foundations,” Taylor said. “You can either spend that money in a strategic and intentional way designed to develop a community for the existing population, or you can spend that money alone in piecemeal, siloed, sectorial fashion that will look good on an annual report, but won’t generate transformational and generational changes inside a community.”
Banks might be incentivized to work together because it could mean two things for them, according to Taylor: First, they’d have an opportunity to spend money in a way that would have maximum impact on the East Side, and second, if done right, the city and the banks could become a model of the way to create high levels of diversity, equity and inclusion in an urban area.
“If you prove how to do that, all that does is open up other markets of consumption all over the country because people want to figure out how to do that same thing,” Taylor said.
Some of that is already happening, at least on a bank-by-bank case, said KeyBank’s Owunwanne. Through the KeyBank Foundation, the company is able to leverage different relationships that connect nonprofits to other entities and corporations that can provide help.
“I see this as an opportunity for us to make not just incremental changes, but monumental changes … as part of a larger group,” Owunwanne said “Again, I say that not to absolve the bank of any responsibility, but just as a larger group.”
Downstairs from Parker’s office, Golden Cup Coffee, a roastery and cafe run by a husband and wife team, and some other Jefferson Avenue businesses are trying to build up a business association for existing and potential Jefferson-area businesses. Parker imagined what the group could accomplish if one of the banks could provide someone on a part-time basis to facilitate conversations, provide administrative support and coordinate marketing efforts.
“In the grand scheme of things, when we’re talking about a multimillion dollar [bank], a part-time employee specifically dedicated to relationship-building and building out coalitions, it sounds like a small thing,” Parker said. “But that’s transformational.”
Suburban, when defined, refers to anything related to or characteristic of suburbs. That part seems intuitive enough. A suburb is a residential area or community located on the outskirts of a city or urban center. Suburbs often offer quieter and more relaxed living compared to the nearby city centers, with a greater emphasis on green spaces and recreational areas.
However, there’s still some confusion floating around about the “suburban” definition and what exactly constitutes a suburban setting. What lies beyond the white picket fence? We’ll uncover this tricky definition and show you some pros and cons of living in this vaguely defined type of area below.
Unveiling the soul of suburbia
The definition of suburban varies from person to person because of the diverse and constantly changing features of these areas. Despite the confusion over the term, more than half of Americans identify with the label “suburban,” according to a study by the American Housing Survey.
Different interpretations of what makes a suburb, well, a suburb depends on both location and experience too. Some major urban areas, like Atlanta or Nashville, endlessly sprawl to the point that the line between urban and suburban further blurs. In more compact cities like San Francisco, it’s easier to draw those lines.
Further, diverse experiences with suburbs or suburban living influence the perception of the term, too. For some, the ‘burbs connote success, “making it,” quiet and safety. For others, it brings to mind a sterile, uninspiring, narrow-minded way of living that stunts growth and self-expression. Both viewpoints are valid, further complicating the definition.
Some defining characteristics
There are, however, general defining characteristics that are traditional tale-tell signs of a suburban area.
Resident lifestyle focus: Suburbs offer a quieter and more predictable lifestyle, catering to families, individuals and young professionals seeking a peaceful living environment.
Lower population density: Suburbs have spacious areas between buildings and larger property square footage, creating a sense of openness due to their lower population density than urban centers.
Proximity to urban amenities: Located on the outskirts of larger cities, suburbs provide residents with easy access to community offerings while only a commute away from city offerings.
Embracing suburban nuances
As we’ve touched on, subjectivity is especially present when it comes to the whole suburban definition. There are some areas where residents resist being labeled as suburbs due to their distinct identities and characteristics. Some non-suburban claim examples include Cambridge, MA, Hoboken, NJ and Santa Monica, CA.
Residents of these areas often see them as a city in their own right due to numerous factors like rich history, vibrant culture and prominent landmarks like universities. However, if we reference back to our general defining traits, these areas absolutely would be considered suburbs instead of compact cities.
Pros of suburban life
Suburban life has a lot of draws, helping contribute to the ever-changing nature of these areas. The suburbs are known to create a peaceful living environment. Because of the characteristic lower population density, residents experience a quieter and calmer environment which creates a drastic contrast to the city environment. This is especially appealing to people and families seeking a more serene living experience.
As popularly depicted in modern media, suburbs have spacious housing. We’ve seen this illustrated with the white picket fence surrounding a large yard for the picturesque family home, providing a visual representation of the suburban lifestyle that we know today. Even in apartments and townhomes, you’re guaranteed larger square footage for a better price than you’d find in the city.
Suburbs often foster a strong sense of community through neighborhoods and like-minded individuals who value the calmer, quieter lifestyle. Through the local schools, parks, community centers and recreational facilities that are commonly available, opportunities for social interactions and community engagement abound.
Cons of suburban life
The grass isn’t always greener on the other side. Suburban life isn’t for everyone, especially depending on your preferences and future dreams and aspirations. For one, suburban life typically equates to a dependency on cars. These areas aren’t as walkable as city centers are, which means residents often rely heavily on vehicles for transportation. This also means experiencing traffic congestion, commute times and transportation costs.
We discussed some great community-building amenities suburban areas have to offer residents. These amenities are definitely not the same as city amenities, and it comes down to personal preference to determine if this is a pro or con. Suburbs typically lack cultural attractions, dining options and entertainment opportunities that are commonly found in larger cities.
The American suburban dream is beyond definition
The suburban American dream has been a cornerstone of the country’s cultural fabric for decades, representing picture-perfect living for many individuals and families. The promise of suburban living includes good schools, safety, green spaces and a sense of community, in hopes of building a secure future for yourself and your family.
For many Americans, this dream was all about finding good opportunities. While this dream has evolved over time, contributing to the changing definition of suburban, it’s still a symbol of hope for a happy life, for those who yearn for this. But we also know it’s not for everyone. This telltale list of qualities determines whether it’s suburban life or city life that fits you.
Your dream life is out there, whether it be in a bustling city center or in a suburban area. Find your perfect place today!
Pharmacy school student loans are one way for potential pharmacists to subsidize some or all of the costs associated with attending pharmacy school.
There are several pros and cons to taking out a pharmacy school loan, from the opportunity to receive student loan forgiveness to potential fees for late payments or a drop in credit score.
Keep reading to learn how much it costs to attend pharmacy school, a few different ways to pay for it, what a pharmacy school loan covers, and the ins and outs of pharmacy school student loans.
Average Cost of Pharmacy School
The average cost of attending pharmacy school spans anywhere from $65,000 to $200,000.
It’s a wide range but, generally speaking, in-state, public schools are on the lower end of the scale, costing around $14,800 to $82,000 per year, while pharmacy programs at private institutions can run between $74,800 and $160,000.
Average Student Loan Debt Pharmacy School
The American Association of Colleges of Pharmacy (AACP)’s 2021 survey of pharmacy school graduates found that about 85% of PharmD degree holders had to borrow money to get through school.
And the average student loan debt for pharmacy graduates, according to that same report, is $173,561.
There’s good news, though: The return on investment can be promising for pharmacists, whose median pay is around $128,710 per year, according to the Bureau of Labor Statistics.
What Can You Use a Pharmacy School Student Loan on?
There are several ways a student loan can be used to cover the cost of a pharmacy school education:
Tuition
As evidenced above, tuition is one of the biggest pharmacy school expenses that can be covered by a pharmacy school student loan. Since it can cost upwards of $200,000 to complete a pharmacy program, student loans can be helpful in covering that cost.
Fees
The term “fees” can sound a little bit elusive, and you typically see it thrown alongside the word “tuition.” The fees associated with attending pharmacy college vary based on the type of program the student attends, how many credit hours the student completes, and whether or not they’re an in-state or out-of-state student. In some cases, a pharmacy school may charge “comprehensive fees” that cover tuition, fees and room and board.
Books and Supplies
Pharmacy school student loans can be used to pay for books, supplies and other education-related expenses. To acquire the funds for books and supplies, pharmacy school student loans are first applied to a student’s tuition, required fees, and room and board bills. Then, any remaining funds get refunded to the borrower, either in the form of a check or through direct deposit. From there, the money can be used to pay for books and supplies.
Recommended: How to Pay for College Textbooks
Living Costs
Room and board is another expense that can be paid for with pharmacy school loans. Students can use their borrowed funds to pay for student housing — whether that’s in a dorm room or an off-campus apartment with roommates.
Pharmacy School Student Loans: Pros & Cons
Pros of Using Pharmacy School Student Loans
Cons of Using Pharmacy School Student Loans
Help people pay for pharmacy school when they don’t otherwise have the financial resources to do so.
Can be expensive to repay.
Open up more possibilities for the type of pharmacy school a person can attend, regardless of the cost.
Can put borrowers into substantial amounts of debt.
Cover a wide range of expenses — from tuition and fees to school supplies, room and board.
Borrowers might have to forego other financial goals to pay off pharmacy school student loans.
Paying off pharmacy school student loans can help build credit.
Late payments or defaulting on a pharmacy school student loan can damage credit.
Pros of Using a Pharmacy School Student Loan
Using a pharmacy school loan comes with a few pros:
Student Loans for Pharmacy School Can Be Forgiven
In terms of pharmacists student loan forgiveness, there are several options for newly graduated pharmacists who need some help paying off their pharmacy school loans.
Typically, these forgiveness programs are available on a state or federal level.
A few different pharmacy student loan forgiveness options include:
• Public Service Loan Forgiveness (PSLF)
• HRSA’s Faculty Loan Repayment Program
• National Institutes of Health Loan Repayment Programs
• Substance Use Disorder Workforce Loan Repayment Program
• State-based student loan forgiveness programs
Salary
As mentioned above, the median pay for a pharmacist is around $128,710 per year. For a pharmacy school graduate with student loan debt, this salary range could mean the difference between paying off loans and still having money left in the budget for living expenses, an emergency fund, and other types of savings.
Credit Score
Paying off pharmacy school student loans can be one way for a borrower to boost their credit score. When building credit history, making on-time payments is a prominent factor, which can potentially have a beneficial effect on a borrower’s credit score. Although their credit score could face a minor dip right after paying off the loan, it should subsequently level out and eventually rise.
Pharmacy school student loans appear as “installment loans” on a person’s credit report, which can diversify the types of credit they manage, thus potentially improving their “credit mix.” Which could also help enhance their credit score.
Cons of Using a Pharmacy School Student Loan
Pharmacy school student loans can also come with a few cons:
Debt
Since a pharmacy school loan is an installment loan, it’s considered a form of debt. As such, potential pharmacists are signing a long-term contract to repay a lender for the money they borrow. Should they find themselves on uneven financial ground, they may end up missing a payment or defaulting on the loan altogether, which could have a damaging effect on their credit report.
Late Payment Penalties
Many pharmacy school student loan lenders dole out fees for late payments. The terms of the loan are outlined by the lender before the borrower signs the agreement, but it’s important to read the fine print because loan servicers can charge a late payment penalty of up to 6% of the missed payment amount.
Interest Rates
Student loans for graduate and doctoral degrees like pharmacy school have some of the highest interest rates of any type of student loan.
Even federally subsidized Grad PLUS Loans have a fixed interest rate of 7.05% for the 2023-2024 school year, which could cause a pharmacy school student loan balance to climb high over time.
Recommended: Grad PLUS Loans, Explained
Average Interest Rates for Pharmacy School Student Loans
Pharmacy students have a variety of student loan options available to them. This table details the interest rate on different types of federal student loans that might be used to pay for a portion of pharmacy school.
Loan Type
Interest Rate for the 2023-2024 School Year
Direct Loans for Undergraduate Students
5.50%
Direct Loans for Graduate and Professional Students
7.05%
Direct PLUS Loans for Graduate Students
8.05%
Private student loans are another option that may help pharmacy students pay for their college education. The interest rates on private student loans are determined by the lender based on factors specific to the individual borrower, such as their credit and income history.
Paying for Pharmacy School
Before looking into an undergraduate student loan option or a graduate student loan option, potential pharmacists might be able to secure other sources of funding to help them pay for pharmacy school.
Scholarships
Scholarships are funds used to pay for undergraduate or graduate school that do not need to be repaid to the provider.
They can be awarded based on many different types of criteria, from grade point average (GPA) to athletic performance to acts of service, chosen field of study, and more. Scholarships might be offered by a college or university, organization, or institution.
For potential pharmacy school students, there are several available options for scholarships through their individual states and other providers. The American Association of Colleges of Pharmacy (AACP) is a great resource for finding a pharmacy school scholarship.
Grants
Unlike scholarships or loans, grants are sources of financial aid from colleges, universities, state/federal government, and other private or nonprofit organizations that do not generally need to be repaid.
The AACP breaks down grants and awards for health profession students and government subsidized grants for pharmacy school students on their website.
Recommended: The Differences Between Grants, Scholarships, and Loans
State Pharmacy School Loans
Some potential pharmacists may be eligible to participate in a state student loan program. The cost of attending a state pharmacy school will vary depending on whether or not the student lives in the same state as the school, so researching the accredited pharmacy programs by state can help them determine how much they’ll need to borrow.
Federal Pharmacy School Loans
The U.S. Department of Education offers Direct Subsidized and Unsubsidized Loans to undergraduate and graduate pharmacy school students. The school will determine the loan type(s) and amount a pharmacy school student can receive each academic year, based on information provided by the student on the Free Application for Federal Student Aid (FAFSA®) form.
PLUS Loans are another federal pharmacy school loan option, eligible to graduate or professional students through schools that participate in the federal Direct Loan Program.
Recommended: Types of Federal Student Loans
Private Pharmacy School Loans
A private student loan is another way for students to pay for pharmacy school. When comparing private student loans vs. federal student loans, it’s important to note that because private loans are not associated with the federal government, interest rates, repayment terms. Benefits also vary depending on the lender. For these reasons, private student loans are considered an option only after all other financing sources have been exhausted.
When applying for a private pharmacy school loan, a lender will usually review the borrower’s credit score and financial history, among other factors.
Private pharmacy school student loans can help bridge the gap between other payment options like the ones listed above, and give potential pharmacists the opportunity to shop around for the option that works best for them.
Income-Driven Repayment Plans
Income-driven repayment plans in particular help borrowers qualify for lower monthly payments on their pharmacy school loans if their total debt at graduation exceeds their annual income.
Here are the four income-driven repayment plans available for federal student loans:
• Income-Based Repayment (IBR
• Pay As You Earn (PAYE)
• Revised Pay As You Earn (REPAYE)
• Income-Contingent Repayment (ICR)
The Takeaway
Nearly 85% of pharmacy school graduates have student loans, according to the AACP. Pharmacy school loans can be used to pay for tuition and fees, living expenses, and supplies like books or required lab equipment. Federal student loans can be used in combination with any scholarships and grants the student may qualify for. If you find yourself still looking for a way to pay for your pharmacy school education after exhausting scholarships, grants, and federal student loans, a private student loan option might be an option to consider.
With SoFi’s private student loans, you get a six-month grace period post-graduation before you start thinking about repayment. Interested applicants can find out their rate in just a few minutes.
Learn more about borrowing a SoFi private student loan.
FAQ
How long does it take to pay off pharmacy school loans?
Depending on the type of pharmacy school loan you take out (private vs. federal) and when the funds were distributed, it can take between five and 30 years to repay a pharmacy school student loan.
How can I pay for pharmacy school?
There are several ways to pay for pharmacy school, including federal student loans, private pharmacy school loans, scholarships, grants, and personal savings.
What is the average student loan debt for pharmacy school?
According to the American Association of Colleges of Pharmacy, the average student loan debt for pharmacy graduates is $173,561.
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