Student loans are a type of financial aid option that lets you borrow a lump sum of money upfront that you’ll repay over time later, with interest. Some students are unclear whether a student loan is a secured or unsecured debt.
Both federal and private student loans are considered unsecured debt. Keep reading to learn more on secured loans versus unsecured loans, pros and cons of each, and why student loans are considered an unsecured form of debt.
What Are Secured Loans?
A secured loan is a type of debt that requires borrowers to provide the lender with an asset of value to back the loan. This asset is called collateral. Collateral could be your home, your car, other property that has monetary value, a savings account, jewelry, and more. The type of collateral you put up is stated in the loan agreement.
If a borrower defaults on their loan and doesn’t pay it back, the lender can take actions to seize possession of the collateral. It then uses the proceeds from the sale of the collateral to recover the unpaid debt.
Common types of secured loans include:
• Mortgage loans
• Home equity loans
• Auto loans
• Some personal loans
Lenders typically view secured loans as less risky to their bottom line since the promised collateral offers them at least some financial protection. In turn, secured loans might offer lower interest rates compared to unsecured loans.
Certain secured loans are also designed as accessible financing for individuals whose credit doesn’t qualify for an unsecured loan.
What Are Unsecured Loans?
An unsecured loan is an installment loan that doesn’t require an asset or collateral upfront to secure the debt. Since this type of loan doesn’t offer an asset-based guarantee to the lender, the borrower must demonstrate a strong likelihood that they’ll repay the debt.
A positive and extensive credit history, consistent and sufficient income, and low credit utilization are some markers that lenders use to determine how risky a borrower is for an unsecured loan. Additionally, since lenders don’t have access to collateral to fall back on in the event of default, unsecured loans generally have higher interest rates.
Credit cards, some personal loans, and private student loans are considered unsecured loans.
Pros and Cons of Secured vs Unsecured Loans
Secured and unsecured loans have their own advantages and downsides. Furthermore, some benefits are only for certain types of secured or unsecured loans. Before signing a loan agreement, it’s important to understand the pros and cons of each option.
Secured Loans
Unsecured Loans
Pros
• More accessible for certain borrowers
• May offer lower interest rates
• Might qualify for larger loan amount
• Certain loans might qualify for tax deductions
• No risk of lost collateral
• Application process might be more straightforward
• Might offer convenient features or perks
• Student loans might qualify for tax benefits
Cons
• Collateral required upfront
• Risk losing collateral if you default
• More stringent borrowing criteria
• Interest rates may be higher
How Federal Loans Differ From Typical Debt
Students often wonder whether federal student loans are secured or unsecured debt. Both federal loans and private education loans are unsecured debt. However, federal loans have significant perks and protections that private student loans don’t offer.
Unlike private student loans that require a minimum credit score or cosigner, most federal student loans don’t require a credit check or a cosigner to qualify for a loan. The Direct PLUS Loan is the only federal loan that requires a credit check, but borrowers with adverse credit can still access a Direct PLUS Loan by completing a few additional steps.
Federal loan rates are fixed, meaning your monthly payment won’t change throughout your repayment term. With federal subsidized Direct Loans, the Department of Education pays for interest that accrues while your loan is in deferment (e.g., while you’re in school). Conversely, other unsecured loans aren’t subsidized and might have variable interest rates that change throughout your repayment period, making it hard to anticipate your budget every month.
You’ll also have access to a range of repayment options, including income-driven repayment (IDR) plans, which are exclusive to federal student loans. Some borrowers qualify for a required payment of $0 per month while enrolled in an IDR plan. Finally, federal student loans are eligible for federal student loan forgiveness programs that cancel a portion of your student debt after meeting minimum program requirements.
Managing Your Student Loan Debt
Getting a handle on your unsecured student loan debt can feel challenging as you balance other areas of your life. Below are a few strategies to help you manage your student loans:
• Make in-school interest-only payments. If you can afford to, consider paying off the monthly interest that accrues while your loan is on in-school deferment. This applies to both unsubsidized federal loans and private loans. Making these small but meaningful interest payments can help you avoid interest capitalization (i.e., paying interest on interest) later.
• Track when your loan payments are due. Be aware of your loan due dates and minimum payments each month. Late payments or missing a payment altogether can have a negative effect on your credit score, since loan repayment history is reported to the major credit bureaus.
• See if you qualify for loan forgiveness or loan repayment assistance. The Department of Education offers a few forgiveness and cancellation programs for eligible borrowers with qualifying loans, like the Public Service Loan Forgiveness program for government and nonprofit employees. Some states also offer loan repayment assistance programs to workers in certain professions, like health care, social work, and law.
• Reach out to your loan servicer or lender. If you’re struggling to make your student loan payment, your loan servicer or lender is your best resource. They can guide you through relief options that are accessible to you, whether that’s getting on a different repayment plan or temporary forbearance.
The Takeaway
A student loan is unsecured debt. Having to put forward collateral to get a student loan is a roadblock that you fortunately don’t have to worry about.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
FAQ
Are student loans considered secured or unsecured?
Student loans are considered unsecured debt, meaning they don’t require collateral from you as a condition of securing the loan. Since there’s no collateral tied to the loan, if you default on the debt, the lender might choose to take you to court in an attempt to collect some or all of the debt.
Is it possible to get a secured student loan?
No. Student loans are a form of unsecured debt. No collateral is required to get a student loan, whether you’re borrowing a federal or private student loan.
How are federal student loans different from private?
Federal student loans are guaranteed and funded by the U.S. Department of Education. They offer exclusive fixed rates, established annual and aggregate loan limits, non-credit-based eligibility criteria, and access to income-based repayment plans and loan forgiveness.
Private student loans are provided by private financial institutions, like banks, credit unions, online lenders, and schools. Private lenders offer fixed or variable loan rates, which differ between lenders. Your eligibility for a private loan involves various factors, like your income and credit history, and repayment terms and plan options vary.
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If you’re delinquent on your student loans, you may experience garnishment if your student loan debt is with a state or federal government or part of a federally insured student loan program. (Garnishment means withholding a tax refund by automatically sending it to your loan servicer to repay a defaulted loan.) Private creditors may also collect your tax refund to repay your student loan debt.
Obviously, garnishment is a difficult situation. Read on to learn more about your alternatives if you are potentially dealing with this scenario.
Can Student Loans Garnish My Tax Refund?
If your loans came from a state or federal student loan program, the federal government may garnish up to 100% of your tax refund if you’re in default repaying your loans. Default is defined as the failure to repay a student loan according to the terms of your promissory note.
You’re considered to be in default if you haven’t made a payment in more than 270 days. You may also experience legal consequences and will lose eligibility for more federal student aid.
However, it’s worth noting that if you are just 90 days or more behind on your payments, you are still considered to be delinquent in your payments. The three major credit bureaus (Equifax®, Experian®, TransUnion®) will likely be alerted. This information may possibly lower your credit score.
Also, only federal loans in default can result in tax refund garnishment, not private student loans, though your servicer might take other steps to get the funds they are owed.
💡 Quick Tip: Enjoy no hidden fees and special member benefits when you refinance student loans with SoFi.
Options for Managing Student Loans
Fortunately, you may be able to avoid default and avoid worrying about the government garnishing your refund. You can head off tax refund garnishment using a few different methods.
It can be wise to talk with your student loan servicer about all your available options. They can help you identify the right repayment strategy for your unique situation. If you have private student loans, you can also talk to your provider to determine the right course of action.
That said, here are a few options to consider:
SAVE Plan
The Saving on a Valuable Education (SAVE) Plan, which replaced the Revised Pay As You Earn (REPAYE) Plan, offers a potential alternative to tax refund garnishment of federal student loans. The SAVE Plan is an income-driven payment plan that lowers your federal student loan payments, taking your income and family size into account to determine your monthly payment.
The plan determines your payment based on your discretionary income, or the difference between your adjusted gross income and 225% of the U.S. Department of Health and Human Services Poverty Guideline amount for your family size.
The SAVE Plan eliminates monthly interest for both subsidized and unsubsidized federal student loans if you make your full monthly payment due. The government covers your monthly interest, meaning your loan balance won’t grow due to accrued unpaid interest.
Under the original SAVE Plan, if you initially borrowed $12,000 or less, after as few as 10 years, your loans would be forgiven (meaning you wouldn’t have to continue to repay your loans after you satisfy all the requirements and guidelines of the plan).
However, it’s important to note that two U.S. district judges (one in Kansas, the other in Missouri) recently placed an injunction on the next phase of the SAVE program and blocked it from providing additional loan forgiveness. The next phase of the SAVE program was scheduled to take effect on July 1, 2024. This is a still evolving situation as of this article’s publication date and one to monitor carefully.
Recommended: Can Student Loans Be Discharged?
Offer in Compromise
You can also take a different tack and work directly with the IRS (Internal Revenue Service) to avoid wage garnishment instead of approaching your student loan servicer. An Offer in Compromise (OIC) may also help your situation.
In an OIC, you pay the IRS less than your total tax debt if you owe the IRS more back taxes than you can afford to repay. If the IRS accepts your OIC, you must meet all the terms of your offer agreement — the IRS will only release your federal tax liens and levies once you fulfill those obligations.
You can fill out the OIC prequalifier tool to learn about your eligibility for an OIC.
Federal Student Loan On-Ramp
Most federal student loan borrowers began federal student loan repayment in October 2023 after the payment pause ended.
To ease borrowers into repayment, the Department of Education created an “on-ramp” period through Sept. 30, 2024, which prevents borrowers from suffering the worst consequences of missed, late, or partial payments, such as:
• Being considered delinquent (meaning your loan payments are 90 days or more late)
• Reports of delinquency to credit scoring companies
• Loans going into default
Note that interest will still accrue, and not making payments means you’ll owe more money on your student loans over time. Your loan servicer may eventually have to increase your monthly payment to ensure you pay your loans off on time.
Also be aware that you can only qualify for the on-ramp if your loans were eligible for the payment pause. You don’t have to do anything to enroll in the on-ramp period.
The Takeaway
If you are not up to date on repaying your student loans, you could be in a situation in which your loan servicer can garnish, or directly take, a tax refund that was heading your way. If this could happen to you, it may be time to consider other options, such as the SAVE Plan, an “offer in compromise” with the IRS, the federal student loan on-ramp option, or another alternative. Talking to your loan servicer can be a smart move, whether you have federal or private loans.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
FAQ
Will student loans affect my tax refund?
If you continue to repay your federal student loans on time and in full, you won’t suffer any consequences to your tax refund. It’s only when your federal loans go into default (meaning they are 270 days or more late in terms of payment) that the government may garnish your tax refund to satisfy student loan debt repayment.
Can my spouse’s tax refund be garnished for my student loans?
A refund from a joint tax return with your spouse may be subject to tax refund garnishment, even though your spouse isn’t liable for your loan default. Your spouse may qualify to reclaim their portion of the refund by filing IRS Form 8379. Check with your tax preparer or search online for more information and details.
What happens if my student loans are in default?
Your federal student loans are considered in default if you don’t make your scheduled payments for at least 270 days. “Default” for private loans may be longer or shorter than the 270 days — ask your service provider for details. The consequences of defaulting on federal loans can include the entire unpaid loan balance and interest becoming due in a process called “acceleration,” lost eligibility for more federal student aid, no eligibility for deferment or forbearance, and lost ability to choose a repayment plan. Your credit score could be negatively impacted, and your wages or tax refund could be garnished.
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SoFi Student Loan Refinance If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Despite the prevalence of TikTok videos and recent articles detailing stories of individual college graduates struggling to find good jobs, the data tells a different story.
After all, the overall labor market is stronger than it’s been in decades. And Zoomers who recently graduated from college are certainly better off, in most respects, than previous generations of new grads.
“If you’re a recent college grad, right now things aren’t booming with opportunities like they were a couple years ago,” says Nick Bunker, economic research director for North America at Indeed Hiring Lab. “But it’s still really a relatively solid labor market. And hopefully, fingers crossed, the market stays strong for a couple years. And that gives you more opportunity to find a job as opposed to hanging your hat for the first six months after you graduate.”
When you compare the labor markets faced by Zoomers with previous generations, recent college grads now are better off than their older counterparts: Zoomer grads are earning much higher salaries today than Gen X did in the mid-1990s. Inflation may eat away at Gen Z’s high wages, but it doesn’t touch the stagflation of the 1970s and 1980s that baby boomer college graduates encountered.
The short recession that Gen Z experienced at the start of the pandemic is certainly no Great Recession, which technically lasted less than two years, but was followed by several years of tepid economic growth. That period stymied recent millennial graduates during crucial early employment years and is likely to negatively impact their lifetime earnings.
“It’s not just the year that you graduate,” says Bunker. “Your first years out probably make the most difference because that’s when you’re getting your foot on the career ladder.”
Gen Z bounced back fast
Despite the fact that the oldest cohort of Zoomers — 2020 grads — entered a job market with the highest unemployment rate in the modern era, that recession lasted just two months. And what followed was one of the strongest economic bounce backs ever.
The nation’s unemployment rate has hovered between 3.4% and 4% since December 2021. The current rate, 4.1%, remains among the lowest in 50 years, which means Zoomer college graduates have strong prospects for getting jobs right out of school and moving up the career ladder.
Bunker says the job market has cooled compared with two years ago. There is far less competition among employers than in 2022, which means fewer opportunities, according to Bunker. But it’s not all that dramatic in the broader context.
“If we wind the clock a little bit more and compare to what we saw pre-pandemic, it’s around those levels,” Bunker says. He adds that when compared with previous cohorts of graduates, job opportunities are roughly in line with those enjoyed by millennials who completed college in the early 2000s.
Gen Z’s unemployment outlier
Even with all of the positive aspects of the current labor market, there’s still a unique trend among recent Gen Z graduates that earlier generations haven’t faced: an unemployment rate that’s higher than overall unemployment.
It’s a particular quirk seen when you parse unemployment data among recent graduates over the past 30 years. The unemployment rate as of March 2024 for recent graduates was 4.7% — a full percentage point higher than the overall unemployment rate at that time, 3.7%.
This is an unusual development. Before 2018, the unemployment rate among recent grads was almost always lower than overall unemployment, due to strong employer demand for highly educated workers.
The reversal is likely because there’s been a surge in demand for non-college-educated service workers since the pandemic.
Underemployment is still high among recent grads
Labor data shows that underemployment — the rate of those with college degrees who are working jobs that don’t require degrees — has always been higher among recent graduates compared with all bachelor’s degree holders.
“They go ahead and get that college degree and then they can’t get on a career track that uses that education,” says Elise Gould, senior economist at the Economic Policy Institute (EPI), a nonpartisan think tank.
It doesn’t help that certain job sectors have become more crowded. Majoring in computer science, for example, doesn’t guarantee a job anymore as tech companies pull back from hiring.
Underemployment among computer science majors is higher than those who study health-related programs, education or engineering, according to a February 2024 report by The Burning Glass Institute, a labor market analytics firm, and Strada Education Foundation. But fewer computer science majors are underemployed when compared with those who study social sciences, psychology, humanities and business management.
As of March 2024, some 40% of recent graduates are working in jobs that don’t require a degree versus 33% of all college graduates, according to data from the Federal Reserve Bank of New York.
Salaries for recent grads have spiked
Gen Z college graduates can expect higher-than-ever salaries when they enter the job market: The typical recent college graduate with a four-year degree can anticipate a salary of around $62,609, according to an analysis of employer job postings and third-party data sources by ZipRecruiter, a job posting site. That roughly matches the Federal Reserve Bank of New York’s finding of $60,000 as the median annual wage for a recent graduate with a bachelor’s degree.
As the chart below shows, current median salaries are above those held by earlier generations of newly minted graduates when adjusted for inflation.
Even though salaries are at a peak for recent grads, the latest cohort might not be earning what they expect: A survey released by Real Estate Witch, a housing market research and review site, found 2023 graduates expected to make around $85,000 at their first job and the minimum salary they said they would accept is around $73,000. However, Real Estate Witch found that the average starting salary for a recent grad is about $56,000.
“If you’re a young person graduating now, maybe the differential between what you expected and what reality is, is quite large,” says Bunker.
It’s also possible that wage growth for young new hires may have plateaued as the momentum in the overall labor market that was pushing wages higher has now slowed, says Liv Wang, senior data scientist at ADP Research Institute, which measures workforce data. “If we look at ages from 23 to 26 — that includes a lot of recent grads — and the median hourly base pay for them is like $17, and that per-hour has been little changed since June 2022,” says Wang, citing recent ADP data.
Still, as Gould points out, young workers are disproportionately lower-wage workers — even if they have a college degree.
Jobs for New Grads: How Does Gen Z Stack Up Against X and Y?
Find out what the overall labor market was like when cohorts from Generation X and Generation Y (aka millennials) entered the workforce after college compared with today’s graduates. Read more.
Gen Z grads do face economic and employment uncertainty
Today’s college graduates heading into the workforce aren’t free from economic challenges. They’re dealing with elevated inflation that eats away at their wages. And when you earn less — as most young workers do — higher costs take a bigger bite. In recent years, the cost of housing has skyrocketed, especially for renters, while health insurance and car ownership have both grown more expensive. And, Gould says, like generations before, young workers fresh out of college who have student loan debt will carry an additional burden.
Salaries, overall, may be higher than ever, but it varies based on your degree. And there are still persistent gender and racial inequities to earnings, Gould points out.
But once again, the data shows it is still a pretty good time to be a college graduate and, in general, to have a degree.
It still pays to get a college degree
Those with college degrees remain more likely to be employed than workers in the same age group, ages 22 to 27, according to an analysis of U.S. Census Bureau data from the Federal Reserve Bank of New York. Even an associate degree or professional certificate can give young workers a leg up, as many areas of the country are facing a shortage of middle-skills labor.
In March 2024 the unemployment rate for recent college grads — those ages 22 to 27 — was 4.7% compared with 6.2% for all young workers in the same age group.
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New doctors with a lot of student loan debt and no savings can have trouble qualifying for a conventional mortgage.
Physician mortgage loans provide an alternative that overlooks these factors.
These specialty home loans are available from many, but not all, traditional lenders.
You might think having a medical degree makes getting a home loan a snap. Not necessarily. Traditional home loans penalize you for having a high debt-to-income ratio, something medical professionals, especially recent graduates, typically have because of student loans. Other negatives for physicians include little to no savings, and in many cases, no permanent job yet.
On the other hand, doctors are among the most financially stable professionals in the workplace. Once established, they tend to have higher incomes, less overall debt, and, importantly, very low default rates when it comes to home loans. Realizing this, banks and other mortgage lenders have come up with a special type of loan tailored to medical professionals called a physician mortgage loan, or doctor loan.
What are physician mortgage loans?
A physician mortgage loan is a specialized loan offered only to medical and certain other professionals. They essentially ignore high student loan debt and low or no savings, especially early in the borrower’s career.
The reason these negatives are temporarily overlooked is because doctors and other professionals typically become high net-worth individuals, with little debt, substantial savings, and very rarely lose their homes to foreclosure.
Benefits of physician mortgage loans
Physician mortgage loans can do a lot for helping medical professionals hoping to buy a home. They come with:
Low down payment requirements
With a physician mortgage, you can buy a home with as little as no money down. This may allow you to borrow more and afford a higher-priced house without worrying about a big down payment. It can also help you buy a home sooner if you have little in savings.
No private mortgage insurance (PMI)
Private mortgage insurance (PMI) is typically required if you make a down payment of 20% or less, but that’s not the case with physician loans. According to Freddie Mac, this typically adds anywhere from $30 to $70 to your monthly payment for every $100,000 you borrow.
Flexible debt-to-income ratios
Physician loans typically require a debt-to-income ratio of 45% or less, which is higher than some other loan programs. It also won’t take student loans into account when calculating this number (more on this below).
Special consideration for student loans
Another feature of physician mortgages is that they typically ignore the total owed on student loans and only consider the amount of the mortgage’s monthly payment when looking at your debts. This can be helpful for physicians, who often have to take out very large loans to pay for their advanced education.
Physician mortgage eligibility requirements
Although the name suggests these loans are only available to doctors, many lenders offer the same loans to other high-income professionals. Eligibility for physician mortgage loans typically extends to:
Dentists
Podiatrists
Veterinarians
Optometrists
Accountants
Attorneys
Certified registered nurse anesthetists (although there are other home loans for nurses, too)
Advanced practice clinicians
Beyond being in one of these professionals you’ll also need to:
Have your income and employment verified
A signed employment contract is often accepted as proof of income, as long as it indicates the amount of your current or expected future salary. Most traditional borrowers have to supply pay stubs or two years of tax returns. You’ll also need proof of your medical or other degree.
Meet credit score requirements
While physician mortgage loan requirements tend to be more flexible than other loan programs, that’s not the case when it comes to credit scores. Though the exact number varies by lender, you’ll usually need a credit score of 700 or higher to get a physician mortgage. This is higher than most other loan programs (FHA loans allow down to 500 credit scores in some cases).
How to apply for a physician mortgage loan
If you’re a medical professional, a physician mortgage might help you buy a home. Follow these steps if you’re interested in applying for a physician mortgage loan:
Find lenders specializing in physician loans
Many banks and traditional lenders offer physician mortgage loans. Wrenne Financial Planning has compiled one list of such lenders, but the easiest way to find out is to call or visit the website of lenders in your area to determine if they offer this product.
Required documentation
You usually won’t need as much documentation with a physician mortgage as you would with another kind of loan. You won’t need tax returns or W-2s, but instead, a signed employment contract indicating your current and future income, proof of your degree, and student loan statements showing you’re current on your payments.
Application process
Once you find a lender, you’ll fill out their application, agree to a credit check, and submit the required documents. Once your loan moves through underwriting, you will pay your closing costs and sign your loan documents.
Closing costs typically include lender fees, attorney fees, title insurance, and taxes, and they average about 3% of the mortgage amount.
Comparing physician mortgage loans with conventional loans
Physician mortgage loans are structured similarly to conventional loans but are much more accommodating to doctors and other high-income individuals given their uncommon financial circumstances. For that reason, most of the accommodations have to do with getting approved.
Here’s a look at how physician mortgage loans vs. conventional loans measure up:
Key differences
Physician mortgages often require no down payment, and they come with no PMI either. With conventional loans, you’ll owe PMI if you make a down payment of less than 20%.
You’ll also need lots more documentation with conventional loans, including W-2s, tax returns, pay stubs, bank statements, and more. On the bright side, you may be allowed to have a lower credit score and still qualify.
Physician loans also treat student loans differently, often excluding them from your total debt-to-income ratio. This can make it easier for medical professionals to qualify, despite high student loan balances.
Pros and cons
We’ve already touched on the benefits of physician mortgage loans, but there are drawbacks to weigh, too.
First, consider the advantage of putting no money down versus the downside. Not only can this put you at risk of buying more house than you can afford, it can also immediately put you “underwater,” meaning you owe more on your home than you could get if you sold it.
Additionally, an average credit score requirement of 700 may preclude you from the home of your dreams before the amount of the down payment even comes up. Another factor that is often overlooked is that most physician mortgage loans usually have an adjustable interest rate instead of a fixed rate.
Physician mortgage FAQs
A physician mortgage loan is a special type of mortgage designed for doctors and medical professionals. They often have low (or no) down payment requirements, no PMI, and exclude student loans from debt-to-income ratio calculations. This can make it easier for doctors to qualify for a mortgage.
Medical doctors, dentists, and other healthcare professionals with an MD, DO, DDS, or DMD degree are usually eligible for physician mortgages.
Low down payments, no PMI, flexible debt-to-income ratios, and special consideration of student loan debt are just a few of the benefits of physician mortgage loans for doctors.
You’ll need to look for lenders specializing in physician mortgage loans, as not all companies offer these. They can guide you through the application process and required documentation.
Physician mortgage loans often have more favorable terms for doctors, but may have higher interest rates compared to conventional loans. They also may require higher credit scores.
Jim Probasco
Aly J. Yale
Aly J. Yale is a writer and editor with more than 10 years of experience covering personal finance topics including mortgages and real estate. She contributes to Personal Finance Insider’s mortgages and loans coverage.ExperienceAly began her journalism career as reporter, and later an editor, for several neighborhood sections of the Dallas Morning News.Her work has been published in several national publications, including Bankrate, CBS, Forbes, Fortune, Money, Newsweek, US News and World Report, the Wall Street Journal, and Yahoo Finance. She’s also contributed to a variety of mortgage and real-estate publications, such as The Balance, Builder Magazine, Housingwire, MReport, and The Mortgage Reports. Her favorite personal finance tip is to schedule regular check-ins to make sure your credit cards, savings accounts, and other financial vehicles still align with your budget and financial goals. She is a member of the National Association of Real Estate Editors (NAREE).ExpertiseAly’s areas of personal finance expertise include:
Mortgages
Loans
Real estate
Insurance
EducationAly is a graduate of Texas Christian University, where she received a bachelor’s degree in radio/TV/film and news-editorial journalism.
In the evolving landscape of employee benefits, HR professionals are increasingly recognizing the importance of supporting their workforce in managing student debt. With the resumption of federal student loan payments last year, the nearing end of the federal on-ramp, and the introduction of innovative matching programs, there’s a pressing need for HR teams to stay informed and proactive. Here’s a closer look at the current state of student loan benefits and how HR can effectively implement these programs to enhance financial wellness in the workplace.
Understanding the Impact of Student Loan Debt
Student loan debt remains a significant burden for millions of Americans, with many employees seeking positions that offer not just a paycheck, but also help in managing this debt. Recent surveys, such as the Employee Benefit Research Institute’s 2022 Financial Wellbeing Survey , indicate that nearly three-quarters of employers are now offering or planning to offer student loan debt assistance or tuition reimbursement programs. This shift underscores the growing recognition that student loan benefits offer significant value — not just for workers but also employers. SoFi at Work’s 2024 Future of Workplace Financial Well-Being study found that employees spend a full 8.2 hours dealing with finances every week while at work.
Analyzing the currently available data from the Department of Education (ED), we found that while total loan forgiveness approved by the Biden-Harris Administration has jumped to $167 billion for 4.75 million borrowers , that still leaves roughly $1.73 trillion in student debt outstanding for 43.2 million borrowers. This means that there are still a significant number of individuals in the workforce and about to enter the workforce who will still be working on paying down their student debt.
This will be particularly felt in a few key talent segments. Older borrowers represent an increasing proportion of borrowers who carry federal student debts, both in terms of the number of borrowers and the amount they owe (14% of borrowers are aged 50-61 and have federal student debt with an average balance of $44.2K). Additionally, among borrowers under 40, first-generation borrowers are about three times more likely to be behind on their payments than borrowers whose parents also attended college.
HR professionals should also be aware of the upcoming end of the federal student loan “on-ramp” period and the grace period for 2024 graduates. Specific to this year, as federal student loan repayments resumed, the ED introduced a temporary “on-ramp” period until September 30, 2024. During this time, borrowers who fail to make payments do not face default. The program was aimed to assist borrowers who might find it challenging to resume payments after the pause of almost four years.
Shortly after the on-ramp ends, most of the graduating class of 2024 (those who tossed their caps in April, May, and June this year) will experience the end of the standard federal loan grace period. Most federal student loan types have a six-month grace period after graduation, leaving school, or dropping below half-time enrollment. This means these employees will likely start their repayment journeys in September, October, and November.
It is shaping up to be a busy Open Enrollment season!
Recommended: Helping Employees Make Smart Student Debt Decisions: The Urgent Need for HR Support
Legislative Enhancements: The CARES Act and Secure 2.0 Act
The introduction of the CARES Act and the subsequent Secure 2.0 Act has provided HR teams with new tools to support their employees. Under the CARES Act, employers can contribute up to $5,250 annually per employee towards student loans on a tax-exempt basis through 2025. By enhancing Section 127 benefits, this provision not only aids employees but also offers payroll tax exclusions for employers, making it a mutually beneficial arrangement.
Further expanding the horizon, the Secure 2.0 Act, effective from January 2024, introduces the option for employers to match their employees’ student loan payments with contributions to their retirement accounts. Companies like Chipotle and Kimley-Horn have already adopted this innovative approach, allowing employees to address their student debt while enhancing their retirement savings, presenting a win-win scenario for financial wellness.
Recommended: How Does an HR Team Implement a Student Loan Matching or Direct Repayment Benefit?
Implementing Student Loan Repayment Benefits
For HR professionals looking to implement or enhance student loan repayment benefits, several key considerations must be addressed:
Direct Educational Assistance Benefits (Section 127 Provisions)
• Determine the contribution level. While the maximum tax-exempt direct contribution stands at $5,250, companies can start with smaller amounts, such as $25 to $100 per month, which can still significantly reduce the interest burden for employees.
• Consider tenure and eligibility. Some companies may tie these benefits to tenure, requiring a certain period of employment before employees can qualify, which can aid in retention.
• Ensure compliance. While there are still several open questions for the IRS to clarify, it’s crucial to have a program document that complies with IRS regulations and coordinates with any other educational assistance programs offered by the employer.
Recommended: Understanding Educational Assistance Programs: A Comprehensive FAQ
• Understand the timeline for qualified student loan payments. When setting up a qualified student loan match, plan advisers and sponsors must be clear on the timing of when these payments may be reported. This is crucial because the timeline for these matching contributions differs from that of a traditional 401(k) deferral match. Understanding and communicating these timelines can ensure smooth implementation and compliance.
• Don’t exceed matching fund limits. When it comes to the level of matching funds that are available, it’s important to note that contributions that exceed the 402(g) limit, which is the maximum amount of money employees may defer to their 401(k) plan each year, may not be matched. For 2024, this limit is set at $23,000. The traditional 401(k) rule for matching, which allows matching only up to this limit, remains in effect. This ensures that the matching contributions are made within the legal financial thresholds.
By carefully considering these aspects, HR professionals can effectively implement student loan repayment benefits that help employees manage their debt and align with regulatory requirements and fiscal prudence.
The Role of HR in Facilitating Smart Debt Management Without a Formal Program
Beyond implementing direct financial benefits, HR can be pivotal in educating and supporting employees in managing their student debt. If your organization is not yet ready to implement Direct Educational Assistance Benefits or Qualified Student Loan Payment Matching programs, consider starting with providing resources like the SoFi at Work’s Navigating Your Student Debt Workbook and organizing workshops on student loan management. Both offerings can empower employees to make informed decisions about their repayment options.
In addition, the SoFi at Work Guide to the Restart of Federal Student Loan Repayments was developed explicitly to help borrowers reestablish their financial footing after the federal loan pause. This relevant guide provides essential information on smoothly transitioning back into making repayments. Additionally, it includes valuable resources and advice on budgeting, saving, and enhancing financial health overall.
Recommended: The Student Loan Crisis and Its Impact on Borrowers
The Takeaway
As we navigate a landscape where student loan debt remains a critical issue for many workers, the role of HR in facilitating debt management and financial wellness is more important than ever. By leveraging legislative tools and providing educational support, HR professionals can significantly impact their employees’ financial health and, by extension, their overall job satisfaction and loyalty. This proactive approach not only enhances the company’s appeal to top talent but also fosters a supportive workplace culture that recognizes and addresses the real-world challenges its team members face.
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You can actually get paid to go to college. Did you know that? Scholarships, grants, and loans can help, but some programs offer direct payments for attending school. This article will explore the best ways to earn money while studying and provide tips to maximize these opportunities.
Federal Work-Study Program
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The Federal Work-Study Program offers part-time jobs for students with financial need. It helps cover college expenses while providing valuable work experience. By participating, you can earn money to pay for tuition, books, and living costs, reducing reliance on student loans.
Find Tuition-Free Schools
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Tuition-free schools offer financial aid and scholarships covering the entire cost of attendance. While they often have strict requirements, they provide an opportunity to attend college without accumulating student loan debt. Researching and meeting eligibility criteria can help you access these programs and save money on your education.
Learn More: How to Pay for College Without Loans and Student Debt
Scholarships
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Scholarships provide financial assistance to college students, reducing the need for student loans. With numerous scholarships available, students can access funds for tuition, books, and living expenses. By applying for scholarships, you can secure additional income to support your college education and minimize the financial burden.
Learn More: What is the Scholarship System? Plus Q&A with the Founder
Military Tuition Benefits Program
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The Military Tuition Benefits Program assists service members and veterans in paying for college. It covers tuition, fees, and other educational expenses, reducing reliance on student loans. By fulfilling military service requirements, you can access financial assistance and pursue your education without accumulating significant debt.
College Tuition Reimbursement Programs
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Corporate tuition reimbursement programs offer financial support for employees pursuing higher education. Employees can receive reimbursement for tuition costs, minimizing the need for student loans. By taking advantage of these programs, you can invest in your education without incurring substantial debt, enhancing your earning potential and career advancement opportunities.
Learn More: How to Pay for College Without Parents Help
Pell Grant Program
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The Pell Grant Program provides federal financial aid to eligible undergraduates based on financial need. By completing the FAFSA, students can access Pell Grants to cover college expenses without relying on student loans. This program offers essential support for students pursuing higher education, helping them achieve their academic goals and minimize financial stress.
Learn More: Do You Have to Pay Back Financial Aid? FAFSA Answers
Teacher Education Assistance for College Students (TEACRS) Program
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The TEACH Grant Program offers financial aid to students pursuing careers in education. By serving in high-need areas, such as low-income schools, students can access grant funding to cover college expenses. This program supports aspiring educators, enabling them to pursue their passion without accumulating excessive student loan debt.
Armed Forces Health Professions Scholarship Program (HPSP)
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The HPSP provides scholarships to individuals pursuing careers in the health professions. By joining the Armed Forces, recipients receive financial support for tuition, fees, and living expenses. This program offers valuable training and experience while reducing the financial burden of higher education, making it an attractive option for students seeking to minimize student loan debt.
Internships
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Internships provide students with real-world experience and potential income opportunities. Paid internships offer compensation while helping students gain industry knowledge and build professional networks. By securing paid internships, students can earn money to support their college education, reducing reliance on student loans and enhancing their career prospects upon graduation.
Learn More: Best Side Hustles for College Students: Ideas for Fast Money
Ask For Tuition Discounts
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Requesting tuition discounts can lower the cost of college education. Many colleges offer discounts based on financial need or academic performance. By researching discount policies and reaching out to financial aid offices, students can access additional funding to cover college expenses. This proactive approach helps minimize student loan debt and maximize financial support for higher education.
More Ideas on How to Get Paid to Go to School
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Discover additional strategies to earn money while attending college. Explore various opportunities, including scholarships, grants, internships, and tuition discounts, to minimize reliance on student loans and enhance your financial well-being. With careful planning and resourcefulness, you can achieve your educational goals while mitigating the financial challenges associated with higher education.
To learn more: How to Get Paid to Go to School: 18 Ways to Get Paid to Attend College
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Ignoring student loans can damage your credit score, lead to wage garnishment, and accrue interest and fees. It may also result in legal action, tax refund offsets, and impact co-signers, making it crucial to address repayment issues promptly with your loan servicer.
Student loan debt in the United States stands at $1.727 trillion as of 2023. The repayment process may seem overwhelming if you’re among the more than 43 million borrowers with outstanding student loan debt. When the bills start piling up, you may ask yourself, “What happens if I don’t pay my student loans?” Here, we’ll take a closer look at student loans and what happens if you ignore them.
What Happens If I Don’t Pay My Student Loans?
Technically, failure to make just one student loan payment could put you in default. However, the default period for federal student loans is generally 270 days, while the default period for private student loans depends on the terms of the loans.
Once you default on your loan, lenders can take steps to recover these funds. It’s essential to understand what could happen if your student loan debt goes into default.
Consequences of Not Paying Student Loans
If you’re struggling to meet all your financial obligations, you might consider not paying your student loans. However, ignoring this debt tends to lead to even more trouble. Below are several consequences you could face for not paying your student loans.
Drop in Credit Score
Depending on the student loan type, missing just one payment could damage your credit. Because payment history accounts for up to 35% of your overall FICO® credit score, having just one missed or late payment often hurts your credit. Unfortunately, these missed payments remain on your credit report for up to seven years.
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Poor credit might impact your ability to purchase a car or a home, rent an apartment, or even land your dream job. It’s important to take action before you miss a payment.
Fall Deeper Into Debt
Ignoring your student loan debt won’t make it go away. In fact, it will only make matters worse. Failing to make your monthly payments only prolongs the time it takes to pay off your debt, and your loan continues to accrue interest during this time. The longer it takes to pay off your student loans, the more you’ll end up paying in interest.
Wage Garnishment
If you have federal student loans, it’s important to realize that the government has power to collect this money if you fail to pay. One of these powers is wage garnishment—the federal government can garnish up to 15% of your disposable income. This can be a huge hit to your budget and should be avoided if possible.
Loss of Tax Refund
Are you expecting a tax refund this year? If you default on your federal student loan, there’s a good chance you’ll lose it. Once in default, the federal government has the power to take all or a portion of your tax return until the amount due is paid.
Damage Cosigner’s Credit
You may not be the only one impacted by ignoring student loan debt. If a cosigner helped you get one or more of your student loans, they can be impacted by late loan payments. It’s critical to speak to your cosigner when you realize you may not have the funds to pay your student loans.
Go to Court
While the government doesn’t have to take you to court to collect federal student loan payments, private lenders do. Depending on the terms of your loan, you could be in default after missing just one payment. Private lenders can sue you to collect payments. If you’re sued, you may need to find an attorney who works with student loan debt cases to help you through the court process.
Debt Doesn’t Go Away
Student loan debt doesn’t disappear just because you ignore it. Instead, it could haunt you for the rest of your life. There’s no statute of limitations for collecting federal loans.
On the other hand, private lenders must adhere to state statutes of limitations. While this may limit the time they have to sue you in court, it doesn’t stop them from trying to collect this debt. This means debt collectors could hound you for the rest of your life.
What to Do If You Can’t Afford to Pay
If you simply don’t have funds to pay your student loans, the last thing you want to do is ignore the problem. There are several steps you can take to avoid making this situation worse.
Check Your Credit
Before you take any action regarding your student loans, take the time to check your credit report. Credit.com’s Free Credit Report Card can help you see what debt is already impacting your credit health.
Check the National Student Loan Database
If you have federal loans, you can use the National Student Loan Database to check the status of your loans. This database provides information about your payments and total debt amounts.
Switch or Update Your Repayment Plan
If you have federal student loans and you’re struggling to keep up with your current repayment plan, you may be able to change it. Start by contacting StudentLoans.gov and explaining your situation. They can help you switch or update your repayment plan to make the payments more affordable.
Contact Your Lenders
If you have private loans and are struggling to make your monthly payments, start by contacting the lender directly. If your situation is temporary, such as a loss of employment or medical condition, you can request a deferment of your payments. This step essentially pauses your payments for a set period, such as six months, to give you time to deal with your situation.
Consider Debt Consolidation
Making monthly payments on multiple student loans can be extremely difficult. If you’re in this situation, it may be time to consider debt consolidation. This strategy allows you to combine all your student loans into one. Rather than having several monthly payments to make, you’ll just have one.
Talk to an Attorney
If you simply can’t afford to pay your private student loans, bankruptcy is another alternative. However, filing for bankruptcy can negatively impact your credit for up to 10 years. You should only consider this step after trying all other methods.
Apply for Student Loan Forgiveness
Check your student loan forgiveness options if you haven’t done so already. Depending on your specific situation, you may qualify for student loan forgiveness, discharge, or cancellation of debt.
Be Proactive About Your Credit
Now that you know about the potential negative consequences of not paying your student loans, you know how important it is to be proactive about them. Start by checking your Free Credit Score with Credit.com to see how where you stand and how your student loans could impact your credit.
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Looking for second job ideas to increase your income? You’re not alone. Many people look for side gigs to help pay bills, save for big purchases, or simply have extra spending money. Finding the right second job and making extra income can make a big difference in your financial life. With so many options available,…
Looking for second job ideas to increase your income? You’re not alone. Many people look for side gigs to help pay bills, save for big purchases, or simply have extra spending money.
Finding the right second job and making extra income can make a big difference in your financial life. With so many options available, there’s likely something that fits your skills and schedule. Whether you want a job you can do from home or one that gets you out and about, there’s a side job out there for you.
For me, I was able to find a second job and it completely changed my life. In fact, it’s how I paid off my $40,000 in student loans in just 7 months. Making extra money also helped me to stop living paycheck to paycheck and to save more money!
Best Second Job Ideas
Below are the best second job ideas:
1. Blogger
Blogging used to be my side hustle and it is now my full-time job where I have earned over $5,000,000 over the years.
I started Making Sense of Cents just as a hobby, and it eventually turned into my second job. I didn’t know that blogs could make money or that it could become my full-time job. I didn’t even understand what a blog was or how it worked.
Starting a blog can be a great way to earn extra income. You can write about topics you are passionate about, such as travel, food, or personal finance. The best part is that you have the freedom to work on your blog whenever you have free time.
For me, it was a great second job because I could work on my blog before I went to my day job, during my lunch break, after I got home from work, and on the weekends. You get to make your own schedule, so that is a huge plus!
You can learn more about how to begin in my free How To Start a Blog Course here.
Here’s a quick outline of what you will learn:
Day 1: Reasons you should start a blog
Day 2: How to choose what to blog about
Day 3: How to create your blog (you’ll learn how to start a blog on WordPress)
Day 4: How to make money blogging
Day 5: My tips for making passive income from blogging
Day 6: How to grow your traffic and followers
Day 7: Extra blogging tips to help you be successful
2. Proofreader
Being a proofreader is a great second job idea. It’s perfect if you love reading and have a good eye for catching mistakes. You get to find errors in spelling, grammar, and punctuation.
You can work from home as a proofreader. Many companies and websites offer remote proofreading jobs. Some popular platforms include Upwork, FlexJobs, and Scribendi.
You might proofread books, articles, or even student papers. The work can be flexible, letting you choose when to work. This makes it easy to fit into a busy schedule.
Proofreaders can earn a decent amount of money. Some jobs pay by the hour, while others pay by the project. According to some sources, full-time proofreaders can make around $50,000 per year. Even if you don’t work full-time, you can still make a good side income.
I personally have a proofreader for my blog, and I know many others who have proofreaders for their businesses as well. It’s a very much-needed and in-demand job.
You can learn more at How To Start A Proofreading Business And Make $4,000+ Monthly.
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This free training teaches you how to start a proofreading side hustle (and how to earn $1,000+ per month!), even if you are brand new and don’t have any previous proofreading experience.
3. Take online surveys
Taking online surveys can be a simple way to earn extra money in your spare time. Companies want to know what you think about their products, services, or marketing campaigns.
Many websites offer paid surveys. You can sign up for these sites and start taking surveys right away. Each survey usually takes a few minutes to complete.
You might earn anywhere from $0.50 to $5 per survey, depending on the length and complexity.
The survey companies I recommend signing up for include:
American Consumer Opinion
Survey Junkie
Swagbucks
InboxDollars
Branded Surveys
Prime Opinion
Five Surveys
PrizeRebel
Pinecone Research
Online surveys can be done from anywhere with an internet connection, making it easy to fit around your other commitments. Just remember, while this can add up over time, you will not make a full-time income from just taking surveys.
I have taken many, many surveys over the years, and what I like about them is that you can do them on your own schedule – in the mornings, during your lunch break, before you go to bed – whenever. There is no strict schedule and they are super easy to do.
4. Dog walker or pet sitter
Becoming a dog walker or pet sitter is a great way to make extra money. You can set your own schedule and enjoy spending time with furry friends. Plus, many people need reliable pet care (I have personally found it hard to find a good dog sitter in the past, so I personally know that there is a lot of demand for this second job!), so there are plenty of opportunities.
Using dog walking apps like Rover, you can easily find clients. These platforms connect you with pet owners in your area. Depending on how much time you invest, you could potentially earn between $400 and $1,000 a month.
When I have had dog sitters in the past, I was paying around $100 a day for my two dogs to be watched in the person’s home. So, a 10-day trip earned the person $1,000.
Taking care of animals can also be very rewarding. You get to exercise while walking dogs and enjoy the company of pets. It’s a job that keeps you active and can be a lot of fun if you love animals.
No special skills are needed, but being responsible and loving pets is important. You must be punctual and trustworthy since pet owners rely on you to take care of their animals.
My mother-in-law as well as my sister are both dog walkers and pet sitters and enjoy what they do.
5. Virtual assistant
Being a virtual assistant is a great second job idea. You can help businesses and professionals with tasks like managing emails, scheduling appointments, and handling social media. This role tends to have flexible hours, making it easier to fit into your schedule.
One of my first side jobs was working as a virtual assistant. It was a fun and flexible way to earn extra money. There are many kinds of virtual assistant jobs. The money I made helped me pay off my student loans quickly, stop living paycheck to paycheck, and become my own boss. I think it’s a great way to make money, whether you want a part-time or full-time job.
Starting as a virtual assistant can be easy. Websites like Upwork, FlexJobs, and Indeed have listings for virtual assistant jobs. You just have to set up a profile and start applying. For me, I also let my friends and those in my industry know that I was growing my virtual assistant business, and that helped me find jobs as well.
A virtual assistant’s tasks can include:
Managing social media accounts
Scheduling travel and appointments
Managing email inboxes
Organizing events
Communicating with clients
Ordering supplies
Managing calendars
Handling logistics
Coordinating Zoom calls
Moderating online forums
Running personal errands
Answering customer service questions
Performing data entry
Managing websites
Creating presentations
Sending invoices
Now, one virtual assistant most likely won’t do all of these tasks – it simply depends on what the company or person is looking for.
Learn more at Best Ways To Find Virtual Assistant Jobs.
6. Graphic designer
You can make extra money as a graphic designer, and this can be a good second job idea if you want to work from home. A graphic designer is what you think – they design different kinds of graphics.
One way is to create design templates. These can be for websites, social media, or even printable designs. You can sell these templates online and get paid each time someone buys them.
Another option is freelance work. You can sell services like logo design, branding, or social media graphics, and you can find clients on sites like Upwork or Fiverr.
7. Social media manager
Social media managers handle different social media platforms for businesses.
Your job can include creating content, posting updates, and responding to followers. You might also need to analyze data to see what posts are doing well and which ones are not.
They work for one company or multiple clients. It’s important to have good communication skills and a creative mindset. Some social media managers also do graphic design or video editing for their social media posts.
Being a social media manager can be fun and flexible. You can usually work from home and set your own hours. This control and flexibility make it an excellent job for people looking to earn extra income on their own terms.
For me, I have been a social media manager in the past as a second job. It was great as a flexible side hustle!
8. Online tutor
If you enjoy teaching and have a strong understanding of a subject, you can try finding online tutoring jobs. Online tutoring lets you share your skills and help students from anywhere, and you can tutor kids in math, science, and reading, or even help them prepare for tests like the SAT or ACT.
Platforms like Wyzant and Tutor.com connect you with students looking for help. You create a profile, list your skills, and set your rates. Most tutors charge between $30 and $60 per hour. Teaching English as a second language is also a popular option. Many companies need English tutors to teach students abroad.
Online tutoring is flexible because you can choose your own hours and work from home. This makes it easy to fit around your teaching job or other responsibilities. Some tutors even make up to $1000 a week by dedicating just a few hours each day.
9. Bookkeeper
Becoming a bookkeeper is a great second job, and it can typically be done from home.
Bookkeepers keep track of financial records for businesses. This could include recording transactions, managing payroll, and preparing financial reports.
You don’t need a special certification to become a bookkeeper, making it easier to start.
The best part is that you can do this job from anywhere with just a laptop and some software. This flexibility means you can work from home or even when you’re traveling.
Since bookkeeping services are always in demand, you can find clients easily. This can be a very profitable side hustle. Some bookkeepers even charge $60 an hour or more.
Learn more at How To Find Online Bookkeeping Jobs.
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This free training will teach you what you need to know to become a virtual bookkeeper and make money from home.
10. Freelance writer
Working as a freelance writer is a great way to make extra money.
Freelance writers are self-employed and work for magazines, blogs, websites, companies, and more. A lot of what you read online today is written by a freelance writer.
I have been a freelance writer for many years, and I really enjoy it. I have written for many different websites and companies, and I make good money doing so.
You can write from home, at your own pace, and choose projects that interest you. Many companies need blog posts, articles, web content, and social media posts.
11. Photography
Getting paid to take pictures is a popular second job idea.
What’s great is that there are many ways to get paid for photography, such as:
Stock photos – Stock image websites are popular places for photographers to sell their pictures. These sites let customers buy royalty-free photos for personal or business use. Websites, TV shows, books, social media accounts, and more use stock photos all the time. Some popular stock photo websites are Shutterstock, iStock by Getty Images, Adobe Stock, and Dreamstime.
Portraits and event photos – As a photographer, you can focus on taking portraits and event photos. This area is in high demand, especially for weddings, elopements, birthdays, and corporate events.
Post pictures on Instagram or Facebook – Social media platforms like Instagram are great for sharing your pictures and gaining followers. Many people make a full-time income from their Instagram accounts. They do this through sponsored partnerships with companies, affiliate marketing, and selling their own products.
12. Personal trainer
Becoming a personal trainer is a great second job idea. You can help people get in shape while earning extra money.
You can work at a gym or do private sessions at clients’ homes. Some trainers also provide online coaching, which gives you more flexibility.
Personal trainers sometimes create workout plans tailored to each client’s needs. They might also give advice on nutrition, and this way, they can help clients with both exercise and diet for better results.
Personal training can be done part-time, which makes it a good fit if you have another job. Many people want training in the mornings, evenings, or weekends.
13. Etsy seller
Starting an Etsy shop can be a fun and rewarding second job. If you enjoy crafting or creating handmade items, this might be perfect for you. Etsy is a popular online marketplace where you can sell unique products.
There are many things you can sell on Etsy, such as:
Etsy can be a great way to turn your hobbies into extra income.
You can learn more at How To Sell On Etsy Successfully: A Beginner’s Guide.
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
14. Babysitter
Babysitting is a great way to earn extra money. You can choose your own hours, making it easy to fit it around your main job or school.
Parents always need trustworthy people to watch their kids, and they might need help for an evening out or during the day if they work long hours.
As a babysitter, you can earn around $15 to $25+ per hour, depending on your experience and location. Some families might even pay more if you have special skills, like CPR training or if you are watching multiple children.
You can find babysitting jobs through local community boards, babysitting apps, or word of mouth. Sometimes, friends or family might also need help.
15. Delivery driver
A delivery driver job is one of the most popular side hustle ideas. You don’t need a lot of experience to get started, and all you need is a vehicle and a driver’s license. Many services, like DoorDash, Uber Eats, and Instacart, let you choose your own hours. This flexibility is perfect if you have a busy schedule.
You can deliver different items depending on the service you work for. Some companies focus on food delivery, while others may deliver groceries or packages.
The pay can vary based on where you live and how much you work. Some drivers make around $15 to $25 per hour including tips.
16. Bartender
Bartending is a flexible and fun second job. You can work at bars, restaurants, or special events like weddings.
Some bartender jobs don’t require a lot of experience. You usually have to start as a barback, helping with stocking and cleaning, then learn to make drinks. Then, you may be able to move up and find a part-time job as a bartender.
17. Transcriptionist
Being a transcriptionist can be a great second job. Transcriptionists listen to audio recordings and type out what they hear. It’s a simple job and doesn’t require a lot of training.
You can do this job from home and all you need is a computer and good internet. This makes it a flexible option where you can work on transcriptions during your free time or on weekends.
There are usually some requirements. Many places want you to type fast and accurately. For others, you might need to pass a background check or transcription tests.
You can learn more at 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly.
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In this free training, you will learn what transcription is, why it’s a highly in-demand skill, who hires transcriptionists, how to become a transcriptionist, and more.
18. Rent your extra space
Do you have an extra room, basement, or garage? Renting out your extra space can be a great way to earn some extra cash each month passively.
You can list your spare room on websites like Airbnb or Vrbo if it’s a room or apartment.
If you have a garage or storage space, you can rent it out for storage. Websites like Neighbor allow people to find storage options nearby.
Before you start, check local laws and regulations. Some areas have rules about renting out space, so it’s important to be informed.
19. Handyperson
Being a handyperson can be a great way to make extra money. You can help people fix things around their homes, such as fixing leaky faucets, repairing doors, or assembling furniture.
You don’t need fancy tools for many jobs, just a good set of basic tools.
Many people need small repairs done but don’t have the skills or time. That’s where you come in. You can find clients through local ads, word of mouth, or online platforms like Taskrabbit.
Working as a handyperson has flexibility too and you can choose jobs that fit your schedule.
20. Rideshare driver
Apps like Uber and Lyft allow you to drive people around and get paid for it.
One of the best parts about driving for rideshare apps is the flexibility. You can set your own hours and work whenever you want.
Most rideshare companies have an easy sign-up process. They usually require a background check, a valid driver’s license, and a car that meets their standards. Once approved, you can start accepting rides and earning money.
The earnings vary depending on your location, the time of day, and how many hours you drive. Some drivers make a nice side income by working during peak hours when rates are higher.
21. Restaurant server
Being a restaurant server can be a great way to earn extra money and is popular for evening second jobs. Many restaurants have flexible hours, which is perfect if you need to juggle another job or school.
Servers often get tips, so your income can vary day to day. Some nights are busier and can bring in more money.
22. Clean houses
Cleaning houses is a good way to earn extra money with a second job. You can work on the weekends or after your regular job.
Plus, you can choose your clients and set your own hours.
To get started, all you need are basic cleaning supplies. You can sell your services to friends and family first. Word-of-mouth is powerful, and you might get more clients through recommendations.
23. Write book reviews
If you enjoy reading and sharing your thoughts about books, you can earn money by writing book reviews. Authors and publishers value your honest opinions because they help other readers decide what to read next. Readers also enjoy reading these reviews, making it helpful for everyone involved.
Here are some websites where you can earn money by writing book reviews:
OnlineBookClub.org – They provide free books at first. After your first review, you can earn cash for each review you write, typically between $5 and $60.
Kirkus Media – They look for reviewers for both English and Spanish books, especially for the Kirkus Indie section. Reviews are around 350 words and due two weeks after the book assignment. They cover all genres, with over 10,000 books reviewed annually.
Upwork – Create a profile and set yourself up as a book reviewer. This freelance platform allows you to set your own rates, with book reviewing rates ranging from $15 to $75 per hour.
The US Review of Books – They hire freelance writers for 250- to 300-word reviews that go beyond summary to provide insights into the book. Applicants need to submit a resume, writing samples, and references.
Reedsy Discovery – Review books before they are published and earn through tips from readers, typically ranging from $1 to $5 per review. It’s a way to influence which books gain popularity early on.
Other opportunities – Websites like Booklist (pays $15 per review, focused on short reviews for libraries), BookBrowse, Women’s Review of Books, and Publishers Weekly also pay for book reviews and are actively looking for new reviewers.
You can learn more at 16 Best Ways To Get Paid To Read Books.
24. Mow lawns
Mowing lawns can be a great second job. It’s simple, flexible, and very profitable.
You can start with not a lot of money too. For example, if you already have a lawn mower, you’re ready to go, and you can start by seeing if anyone in your neighborhood needs their lawn mowed.
Pricing your services depends on the size of the lawn and the complexity of the job. Some lawns might be easy and quick, others might take more time. Many people charge between $40 and $50+ per lawn.
Frequently Asked Questions
When looking for second job ideas, it’s important to find something that fits your schedule and goals. Here are answers to some common questions about picking the best side gig and managing two jobs.
What is the best 2nd job to have?
The best second job depends on your interests and skills. Some popular side hustle ideas include blogging, proofreading, taking online surveys, dog walking or pet sitting, and being a virtual assistant. These jobs have flexibility and can often be done from home.
What are some good jobs I can do at night after my day job?
Jobs you can do at night include customer service representative, security guard, bartender, or freelance work like writing and graphic design. These jobs usually have evening shifts or can be done remotely, fitting in well with a daytime schedule.
What are some good second jobs at night from home?
If you want to learn how to make extra income while working full-time, then my favorite way is to find good second jobs that you can work at night from home. This way, you don’t have a commute and it won’t interfere with your day job. Some good evening jobs from home include blogging, taking surveys, proofreading, bookkeeping, writing book reviews, and transcribing.
How can I make an extra $1000 a month?
To make an extra $1000 a month, you may want to try freelance writing, virtual assistant work, or becoming a part-time tutor. These jobs can pay well and offer flexible hours, allowing you to work around your primary job.
How can I make an extra $2000 a month?
Earning an extra $2000 a month may require a higher-paying side gig. Options include freelance web development, consulting, or starting a small business like dropshipping. These jobs can have higher earnings but may require more specialized skills or time investment.
How to get a second job with a 9-5?
You can get a second job with a nine-to-five by looking for evening or weekend positions and looking for jobs with flexible hours such as bartending, retail cashier, or working as a rideshare driver. Online jobs like tutoring or freelancing can also have nice flexibility to work after your main job.
What is the highest paying side hustle?
The highest-paying side hustles can include freelancing in tech fields like software development, graphic design, or consulting. Real estate investment, if you have the money to start investing, can also be very high paying.
Do you get taxed more if you have two jobs?
Having two jobs can put you in a higher tax bracket, meaning you might pay more in taxes. It’s important to understand how this affects your overall earnings. I recommend talking with a tax professional to talk about your tax situation and to make sure that you aren’t overpaying (or underpaying!).
How will my employer know if I have a second job?
Your employer may know if you have a second job if it affects your primary job performance or if you disclose it. Some employers also run social media checks to see if they can learn anything about you that may hurt their business. You may want to check your employment contract if you are worried, as some employers may have clauses about working multiple jobs.
Is having two jobs worth it?
Having two jobs can be worth it if you need extra income for savings, paying off debt, or reaching financial goals. It requires good time management and can be tiring, but many find the financial benefits to be rewarding. For me, I found having more than one job well worth it because it allowed me to pay off my student loan debt quickly, save more money, and pursue my passions.
Second Job Ideas – Summary
I hope you enjoyed this article on the best second job ideas.
As you can see, there are many popular second job ideas that may interest you. From online jobs like blogging, proofreading, and bookkeeping to in-person jobs like personal training, delivery, restaurant jobs, and more, there are many ways to make extra money so that you can reach your goals.
If you need a second job while working full-time, you are not alone. Many people are in your shoes. I recommend finding something that best fits your schedule and is at least somewhat flexible so that you aren’t making yourself too tired.
For me, I have had many side jobs. One thing that has always helped me is to make sure that it would fit with my day job and be flexible – because my day job did come first. Plus, I didn’t want to waste more time than I would need to by commuting back and forth or doing things that weren’t needed.
As graduation season approaches, finding the perfect gift for the graduate in your life can be both exciting and challenging. Whether they’re transitioning into the workforce or furthering their education, it’s essential to commemorate this milestone with a thoughtful and practical gift that reflects their achievements and aspirations. In this guide, we’ll explore a variety of gift ideas tailored to suit every graduate’s unique interests and future endeavors.
How Much to Give a High School Graduate
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Wondering how much to give a high school graduate? Close friends or relatives typically give $30-100, while parents may give up to $100-300. For less familiar graduates, $25-40 is suitable.
To learn more: How Much to Give for High School Graduation as Money Gift
How Much to Give a College Graduate
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Doubling the high school graduation gift amount is common for college graduates, ranging from $60-600. Consider the graduate’s relationship and your budget when determining the appropriate gift.
Graduation Money Gift Ideas
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Discover creative ways to give money as a graduation gift. From themed money gift boxes to fun DIY money cakes, explore unique ideas to celebrate the graduate’s achievement.
To learn more: 25+ Clever and Creative Graduation Money Gift Ideas With Money
Teach Them to Go to College Without Loans
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Learn how to pay for college without loans through scholarships, grants, and savings strategies. This guide offers tips on securing financial aid and minimizing student loan debt. This might be the best long term gift you can give.
To learn more: How to Pay for College Without Loans and Student Debt
Use a Money Gift Box
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Make giving money fun and memorable with DIY money gift boxes. These customizable gifts are perfect for birthdays, weddings, or graduations. Get creative with themed decorations and personal touches.
To learn more: Money Gift Box: Ideas on How to Give and Dispense Money as a Gift
Gift one of the Top Rated Personal Finance Books
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Explore top-rated personal finance books to empower graduates with essential money management skills. From budgeting to investing, these books offer valuable insights for financial success. These are my top picks.
To learn more: Best Finance Books: The Top 10 Must-Read Books To Improve Your Finances
Give one of the Life-Changing Books
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Discover life-changing books across various genres, from personal development to finance. These transformative reads offer inspiration and practical advice for graduates embarking on new chapters.
To learn more: 35 Life-Changing Books That Will Change The Way You Think And Feel
Help Decorate with these First Apartment Ideas
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Prepare graduates for independent living with practical first apartment ideas. From furniture to kitchen essentials, this checklist ensures they have everything they need to furnish and decorate their new space.
To learn more: First Apartment Checklist: Everything You Need to Buy
Guide the Graduate to Learn High Income Skills
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Equip graduates with high-income skills to boost their earning potential. Explore lucrative opportunities in fields like AI, cybersecurity, and copywriting, offering alternative paths to success.
To learn more: Top High Income Skills Without a Degree to Learn
Small Gift Ideas to Give
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Find creative and budget-friendly gift ideas for graduates. From personalized mementos to practical gadgets, this guide offers thoughtful suggestions for every graduate in your life.
To learn more: The Best 50 Small Gift Ideas for Everyone In Your Life
Make a Statement with these Money Cake Ideas
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Impress with unique money cake ideas for graduations and special occasions. Whether using dollar bills or crafting edible designs, these DIY cakes make memorable gifts that stand out.
To learn: How to Make a Money Cake: A Fun and Easy Money-Pulling Cake Ideas
Don’t Forget those College Care Packages
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Show your support with thoughtful college care packages for special occasions. From holidays to birthdays, sending a care package is a meaningful way to stay connected with college students.
To learn more: 76 Best Care Packages for College Students: Ideas They’ll Love
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