What can employers do to make sure their financial benefits attract and serve a truly diverse workforce?
It’s a question that has become increasingly relevant since the Covid-19 pandemic shed a harsh light on the pervasive economic inequalities embedded in society and the workplace. While there have been gains in the average wealth of all demographic groups since 2019, the racial wealth gap remains stubbornly wide.
According to Federal Reserve data from the second quarter of 2023, Black families had about $986,000 less wealth, on average, compared with white families, while Hispanic families had about $992,000 less wealth, on average, than white families. Put more starkly: Black and Hispanic families had 24 cents for every $1 of white family wealth.
Even when they attend and graduate from college, minorities still face an uphill financial climb. According to the Education Data Initiative, Black college graduates owe an average of $25,000 more in student loan debt than white college graduates. Four years after graduation, black students owe an average of 188% more than white students borrowed.
And while women have increased their presence in higher-paying jobs traditionally dominated by men, the gender pay gap hasn’t gone away: On average, women are paid 83.7 percent as much as men, which amounts to a difference of $10,000 per year. The gaps are even larger for many women of color, according to the U.S. Department of Labor.
Given these realities, it’s important that diversity, equity, and inclusion (DE&I) programs and financial wellness initiatives are effectively combined to help address the problems of economic inequality throughout every segment of your workforce.
By helping underrepresented employees turn wages into long-term wealth, companies can play a pivotal role in driving financial success that impacts future generations and results in systemic change.
Where Do Financial Wellness and Diversity, Equity, and Inclusion Intersect?
These days, many employers of all sizes have a DE&I strategy or program in place to increase inclusion and remove bias and discrimination in the workplace. Financial wellness benefits are also growing in popularity as a way to attract, retain, and add value to employees.
While companies may actively promote both financial wellness and DE&I, they often overlook the potential synergy between the two. Understanding how these two human resource pillars work together can help amplify the relevance, effectiveness, and success of both programs throughout your workforce.
Traditionally, financial well-being programs have focused on long-term savings and investing for retirement. But it’s becoming increasingly apparent that this approach doesn’t meet all the needs of an increasingly diverse workforce.
Depending on the individual, financial success can come in many forms, not just having enough for retirement. Success might also include paying off debt, saving for emergencies, or buying a first home. Understanding your workforce and its diverse needs — as well as understanding the importance of a broad-based definition of financial well-being — helps put you at the nexus of your DE&I and financial wellness goals.
Recommended: How to Support Your Low-Wage Workforce
Can Financial Well-Being Initiatives Enhance Diversity, Equity, and Inclusion in Your Workforce?
The answer is an overwhelming yes — as long as your financial well-being programs are designed to be customizable for employees on different financial footings with a range of financial goals and stresses. Here are some steps you can take to integrate your financial well-being and DE&I programs.
Ensure Fair Pay for All Employees
This may seem like a basic concept, but it still needs plenty of attention. Doing everything you can to close the race and gender pay gaps in your organization shows your commitment to both DE&I and financial well-being — and to making them work together.
Recommended: How Employers Can Help Close the Racial Wealth Gap
Embrace Flexible Financial Contribution Programs
Personalized, relevant financial benefits can help you meet your employees where they are in terms of financial challenges and goals. When you offer a range of financial well-being benefits, you give employees the power to choose the financial programs that can help them the most.
The pandemic highlighted for many people the need for short-term, goal-oriented savings as well as long-term investing. Programs that can resonate strongly with today’s diverse workforce and its many needs include: emergency savings accounts; student loan repayment programs, including 401(k) matches for employees paying off student loans; budget counseling, and debt management tools. Established college tuition reimbursement and retirement savings programs are also vital parts of a holistic financial wellness program.
Recommended: How Does an HR Team Implement a Student Loan Matching or Direct Repayment Benefit?
Get Creative
Don’t be afraid to think out of the box when it comes to expanding financial well-being programs so that you can include all employees. Many employers are reimagining traditional approaches to leaves and paid time off — for example, allowing employees to transfer unused PTO balances into accounts like emergency savings or 529 tuition savings plans.
Creativity is also important when it comes to education efforts. Simply offering new programs is not enough. Education efforts should be accessible, interactive, and customized so that each employee can find the information they need and act on it.
SoFi at Work has noticed that some employers are adopting a “learning journey” approach that allows workers to choose their own paths depending on where they are on their journey towards their individual financial goals and aspirations.
Recommended: Are Your Benefits Helping Women — Especially Moms — Achieve Financial Wellness?
Choose Credible Partners for a Sustainable Program
To provide this extra support and guidance across a broad spectrum of financial needs, you’ll need to choose credible partners that can provide expertise, platforms, and cost-effective services in specific areas. Good partners can help you launch personalized and sustainable programs that are accessible in the short-term, but also build the foundation for your department’s long-term goals.
The Takeaway
Employers can play a key role in ensuring that all employees have the same opportunities for financial success and control of their own financial futures. Democratizing financial well-being can not only create a more diverse and inclusive workplace, but ultimately a more equitable future for all of us.
SoFi at Work can help. We provide the benefits platforms and education resources that can enhance financial wellness throughout your workforce.
Photo credit: iStock/pixdeluxe
Products available from SoFi on the Dashboard may vary depending on your employer preferences.
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score provided to you is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Advisory tools and services are offered through SoFi Wealth LLC, an SEC-registered investment adviser. 234 1st Street San Francisco, CA 94105.
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.
When it comes to their kids, many of your employees may be willing to put their retirement on the line.
As HR pros focus on workforce planning, understanding the burden that college costs impose on most employees is a key component for successful financial wellness programs.
Paying for college is a daunting challenge, and even financially savvy parents can become overwhelmed and confused by the college financing process. That’s where employer-sponsored education efforts can help. Employers who understand the following common college financing traps can better plan programs to alleviate the stress of paying for college and improve financial wellness overall.
Trap One: Prioritizing Their Children’s Education Over Their Own Retirement
By now, it’s become a financial wellness mantra: Parents should prioritize their retirement savings before saving for or paying for a child’s college education. After all, the thinking goes, students can borrow for education costs, but parents can’t borrow money to pay for retirement. And if parents don’t properly prepare for retirement, their children may end up supporting them in their later years, jeopardizing their future finances.
But with ever-rising tuition costs and the increasing burden of student debt, it may be harder for your employees to follow that tried-and-true advice. The cost of college has more than doubled over the past four decades — and student loan borrowing has risen along with it. Americans collectively owe more than 1.7 trillion in student loan debt, according to the Federal Reserve .
Trying to ease the burden on their children, your employees may be raiding their future. Among people aged 25 to 80 who are saving for both retirement and future college expenses, 58% say they are delaying retirement, and 41% say they have withdrawn money from their own retirement funds to pay for a child’s (or other relative’s) tuition, according to a July 2023 survey by the Society of Actuaries .
When an employee delays retirement to catch up on missed retirement savings or pay off education loans, it can be costly to an organization. What’s more, if paying for college forces an employee to work longer than they want to, the result may be a less productive, less engaged worker.
Recommended: SoFi Survey: The Future of Financial Well-Being at Work
Trap Two: Mismanaging PLUS loans
Parent Loans for Undergraduate Students (PLUS loans) are underwritten by the federal government and allow families to borrow without the same credit checks and other limits imposed on other types of lending. Because these loans are in a parent’s name, your employees may naturally gravitate to them as a way to help their children avoid debt.
But there are drawbacks. Unlike federal student loans, there are no limits on the amount parents can borrow as long as it doesn’t exceed education costs. To qualify for a PLUS loan, parents need only pass a check for an “adverse event” such as a recent bankruptcy filing or foreclosure. There is no consideration of the borrower’s ability to repay the loan. Given the often astronomical costs of attending a four-year college, your employees may quickly find they have taken on more debt than they can comfortably handle.
In addition, PLUS loan interest rates, set by the government each year, are usually significantly higher than student-held federal loans (8.05% for 2023-2024 versus 5.50%) and sometimes higher than some private college loans.
If parents default or consolidate their PLUS loans, or if they receive a forbearance or a deferment, the interest that continues to accrue is capitalized. That means that principal and payments can become even more unaffordable for employees. In addition, if the loans go into default, the government can garnish wages, Social Security checks, and tax refunds.
Recommended: Preparing for College Resource Guide for Parents
Trap Three: Avoiding College Financing at All Costs
Another common mistake lurks on the opposite side of the spectrum. In an effort to avoid college debt of any kind, parents who have some, but not enough, college savings may decide to forego saving for retirement, dip into retirement savings, or use home equity to pay tuition bills as they come.
Withdrawing 401(k) savings can result in significant penalties, taxes, and, importantly, lost principal and earnings. Cash-out home refinancing can lead to higher and perhaps unaffordable mortgage payments. Even putting retirement savings on hold when the year’s tuition is due can translate into large gaps in savings goals, depending on the number and ages of children attending college.
These are all understandable mistakes. As we saw above, an overreliance on debt to pay college bills can seriously jeopardize financial well-being. But so, too, can dismissing the strategic use of financial aid and loans to finance college costs.
For instance, your employees may neglect filling out the Free Application for Federal Student Aid (FAFSA), figuring that they earn too much to qualify for federal financial aid. According to Sallie Mae’s How America Pays for College 2023 report, 71% of families filed the FAFSA for the 2022-2023 academic year, down from 86% in 2016-2017.
These parents may not realize that without the FAFSA, the student will not be awarded federal subsidized and unsubsidized loans, which can be attractive for their low rates and, in the case of subsidized loan, help from the government in paying interest.
More importantly, many schools require students to submit a FAFSA to be eligible for merit-based scholarships and grants, even though these funds are awarded according to the student’s academic record and other achievements, not financial need. Merit-based aid does not have to be repaid and is usually awarded to undergraduates for the full four years.
While too much debt is never smart, a prudent and affordable mix of well-structured student debt can help parents avoid sacrificing retirement savings, home equity, and other long-term savings to pay for college now.
Employer-sponsored college financing education and one-on-one college counseling can help ensure parents understand the complexities of financial aid and student borrowing so they can balance long-term and current financial needs and goals.
The Takeaway
Employers who help parents avoid these common college financing traps may help alleviate what is fast becoming one of the largest sources of financial stress in your workforce.
SoFi at Work can help with student loan repayment platforms, extensive education efforts, plus a lending suite of student, graduate student, MBA, and parent loans. For organizations that are looking to help their employees get ahead on their education financing goals, SoFi at Work also offers a 529 College Savings Program, which can be integrated into any payroll system.
Photo credit: iStock/Orbon Alija
Products available from SoFi on the Dashboard may vary depending on your employer preferences.
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score provided to you is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Advisory tools and services are offered through SoFi Wealth LLC, an SEC-registered investment adviser. 234 1st Street San Francisco, CA 94105.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
President Joe Biden, in his ongoing crusade against hidden junk fees, has so far cracked down on event ticketing, airlines, financial companies and rental housing. The next target: junk fees at colleges and in student lending.
On Friday, the Biden administration announced several new actions to alleviate the burden of these superfluous fees. The most significant would be the elimination of origination fees for federal student loans — if it passes muster with Congress.
“We feel strongly that there are times where the American consumer is kind of played for a sucker,” says Neera Tanden, domestic policy advisor to Biden. “There’s a hidden fee or there’s some way in which a company or an entity is basically using its market power to make you pay a fee that you shouldn’t have to.”
Junk fees are the label given to the irksome and often surprise surcharges to what you’re already paying for. This includes things like credit card late fees, overdraft fees at banks, amenity and resort fees at hotels, service fees for event ticketing or food delivery, as well as seat selection fees on airlines. For over a year, the Biden administration has taken several actions to curb junk fees and surface hidden fees.
End student loan origination fees
On the student lending side, Biden would eliminate the student loan origination fee as part of his 2025 budget proposal.
Origination fees are the percentage of the loan amount that’s considered a processing fee. The fee ends up being tacked on to loan balances, which means borrowers would pay interest on the fee over the life of the loan. Origination fee rates range from 1% for undergraduate loans to 4% for graduate and parent PLUS loans.
Tanden, who spoke with NerdWallet in an exclusive interview, calls origination fees a “relic of the past” when private lenders originated student loans backed by the government, which hasn’t been the case since 2010 when the federal government began exclusively lending directly rather than guaranteeing loans made by private financial institutions. She adds that there’s no current rationale for it in federal student lending.
Borrowers collectively spend more than $1 billion annually on origination fees, according to a release by the administration. However, Biden can’t get rid of origination fees unless Congress approves it as part of the nation’s 2025 budget.
Tanden says she hopes the proposal will be treated as a nonpartisan issue. “We know that Republicans have welcomed ways to cut back on taxes for people,” she says. “This is really just a tax on student borrowing.”
If origination fees are eliminated, it would impact future student loans only, not existing debt.
Eliminate junk fees with student banking products
The college-related fees Biden is targeting include “high and unusual fees” associated with student financial products. Colleges and universities often offer bank accounts and credit cards as part of affiliations with financial institutions. These fees include insufficient funds fees, maintenance fees and closure fees.
Biden wants to block financial companies that partner with colleges to disburse Title IV funds (such as student loans) from charging fees to students. The administration says these junk fees are out of step since banks have largely phased them out.
The measure to end junk fees for college banking and student credit cards is currently in the formal process known as negotiated rulemaking. Though it doesn’t require approval by Congress, don’t expect a change anytime soon.
Empower students to authorize tuition charges for textbooks
Many colleges and universities have long included textbooks as part of students’ tuition bills. That means that the charge is automatically included and students have to pay for course materials regardless of the actual costs available on the market. Students might be able to find textbooks cheaper somewhere else, but colleges still bundle those anticipated costs as part of tuition.
Biden is proposing that students be required to authorize a charge on their tuition bill for textbooks and other required materials for their courses. The administration says these changes would provide students with the opportunity to do a cost comparison to find the cheapest options or eliminate the cost altogether by accessing free open-source textbooks.
“The college has a lot of power and sway and these are ways that, you know, essentially consumers — your students — are forced to pay for things that they should be able to look at cheaper costs,” says Tanden.
These changes are also in the negotiated rulemaking process and don’t require congressional approval.
Require colleges to return unused ‘flex dollars’ and meal plans
Students are often required to purchase meal plans with their college or university, which are used for dining hall meals or as “flex dollars” to pay for food elsewhere on campus. But at the end of each semester, schools can rescind any remaining funds. That means students must spend the money before the semester ends or forfeit what they’ve already paid for — often with student loans.
“Students are often taking on debt in their college years to pay for the cost of living, as well as their tuition, and because of interest that could grow in cost,” says Tanden.
The Biden administration would halt colleges from taking leftover funds and instead require them to return the remaining dollars to students.
The administration announced it is now formally considering this regulation. It would need to move through the negotiated rulemaking process and wouldn’t need approval by Congress.
Photo by Drew Angerer/Getty Images News via Getty Images
President Joe Biden, in his ongoing crusade against hidden junk fees, has so far cracked down on event ticketing, airlines, financial companies and rental housing. The next target: junk fees at colleges and in student lending.
On Friday, the Biden administration announced several new actions to alleviate the burden of these superfluous fees. The most significant would be the elimination of origination fees for federal student loans — if it passes muster with Congress.
“We feel strongly that there are times where the American consumer is kind of played for a sucker,” says Neera Tanden, domestic policy advisor to Biden. “There’s a hidden fee or there’s some way in which a company or an entity is basically using its market power to make you pay a fee that you shouldn’t have to.”
Junk fees are the label given to the irksome and often surprise surcharges to what you’re already paying for. This includes things like credit card late fees, overdraft fees at banks, amenity and resort fees at hotels, service fees for event ticketing or food delivery, as well as seat selection fees on airlines. For over a year, the Biden administration has taken several actions to curb junk fees and surface hidden fees.
End student loan origination fees
On the student lending side, Biden would eliminate the student loan origination fee as part of his 2025 budget proposal.
Origination fees are the percentage of the loan amount that’s considered a processing fee. The fee ends up being tacked on to loan balances, which means borrowers would pay interest on the fee over the life of the loan. Origination fee rates range from 1% for undergraduate loans to 4% for graduate and parent PLUS loans.
Tanden, who spoke with NerdWallet in an exclusive interview, calls origination fees a “relic of the past” when private lenders originated student loans backed by the government, which hasn’t been the case since 2010 when the federal government began exclusively lending directly rather than guaranteeing loans made by private financial institutions. She adds that there’s no current rationale for it in federal student lending.
Borrowers collectively spend more than $1 billion annually on origination fees, according to a release by the administration. However, Biden can’t get rid of origination fees unless Congress approves it as part of the nation’s 2025 budget.
Tanden says she hopes the proposal will be treated as a nonpartisan issue. “We know that Republicans have welcomed ways to cut back on taxes for people,” she says. “This is really just a tax on student borrowing.”
If origination fees are eliminated, it would impact future student loans only, not existing debt.
Eliminate junk fees with student banking products
The college-related fees Biden is targeting include “high and unusual fees” associated with student financial products. Colleges and universities often offer bank accounts and credit cards as part of affiliations with financial institutions. These fees include insufficient funds fees, maintenance fees and closure fees.
Biden wants to block financial companies that partner with colleges to disburse Title IV funds (such as student loans) from charging fees to students. The administration says these junk fees are out of step since banks have largely phased them out.
The measure to end junk fees for college banking and student credit cards is currently in the formal process known as negotiated rulemaking. Though it doesn’t require approval by Congress, don’t expect a change anytime soon.
Empower students to authorize tuition charges for textbooks
Many colleges and universities have long included textbooks as part of students’ tuition bills. That means that the charge is automatically included and students have to pay for course materials regardless of the actual costs available on the market. Students might be able to find textbooks cheaper somewhere else, but colleges still bundle those anticipated costs as part of tuition.
Biden is proposing that students be required to authorize a charge on their tuition bill for textbooks and other required materials for their courses. The administration says these changes would provide students with the opportunity to do a cost comparison to find the cheapest options or eliminate the cost altogether by accessing free open-source textbooks.
“The college has a lot of power and sway and these are ways that, you know, essentially consumers — your students — are forced to pay for things that they should be able to look at cheaper costs,” says Tanden.
These changes are also in the negotiated rulemaking process and don’t require congressional approval.
Require colleges to return unused ‘flex dollars’ and meal plans
Students are often required to purchase meal plans with their college or university, which are used for dining hall meals or as “flex dollars” to pay for food elsewhere on campus. But at the end of each semester, schools can rescind any remaining funds. That means students must spend the money before the semester ends or forfeit what they’ve already paid for — often with student loans.
“Students are often taking on debt in their college years to pay for the cost of living, as well as their tuition, and because of interest that could grow in cost,” says Tanden.
The Biden administration would halt colleges from taking leftover funds and instead require them to return the remaining dollars to students.
The administration announced it is now formally considering this regulation. It would need to move through the negotiated rulemaking process and wouldn’t need approval by Congress.
Photo by Drew Angerer/Getty Images News via Getty Images
Amidst a backdrop of inflation, rising borrowing costs, and growing debt levels, employee financial wellness has been on the decline in recent years. According to PwC’s 2023 Employee Financial Wellness Survey, a full 60% of full-time employees are stressed about their finances. Indeed, employees are even more concerned about their finances today than during the height of the pandemic.
Given that money worries can take a toll on employee health and well-being, as well as productivity at work, it makes sense that a growing number of employers are enhancing support for financial wellness. Bank of America’s 2023 Workplace Benefits Report found that 97% of employers now feel responsible for employee financial wellness (up from 95% in 2021, and from 41% in 2013).
Regardless of how well-compensated your staff may be, this type of resource can help workers feel more financially confident and prepared for the future. Here’s a look at 10 reasons why adding this benefit is so important.
1. Decreases Distractions and Increases Productivity
According to PwC’s Survey (which included 3,638 full-time employed adults across a variety of industries), financially stressed employees tend to be more distracted and less engaged while at work. The study found that financial stress and money worries had a negative impact on the respondents’ sleep, mental health, self-esteem, physical health, and personal relationships. Nearly one-third of employees surveyed admitted that financial insecurity has negatively impacted their productivity at work.
When employees are able to easily get answers to their financial questions and access on-site support when dealing with money problems, there’s a good chance they’ll be less stressed about their finances and more able to focus on their jobs. That’s a win for both employees and employers.
2. Improves Employee Physical Health
Financial stressors have been found to correlate directly with not only mental health challenges but also with poor physical well-being. As the American Psychological Association points out in their Stress in America 2023 report, stress and anxiety put the body on high alert and ongoing stress can accumulate, causing inflammation, wearing on the immune system, and increasing the risk of a number of different ailments, including digestive issues, heart disease, weight gain, and stroke.
Providing your employees with the support they need now can go a long way toward staving off physical health challenges down the line.
3. Builds Loyalty
By offering financial wellness programs, employers demonstrate a commitment to their employees’ well-being, which can help foster employee loyalty and increase retention rates.
The PwC study found that just 54% of financially stressed employees felt there was a promising future for them at their employer, and they were twice as likely to be looking for a new job than employees who were less stressed about their personal finances. What’s more, 73% of financially stressed employees said they would be attracted to another employer that cares more about their financial well-being compared to just 54% of non-financially stressed employees.
Recommended: 3 Ways to Support Your Employees During Times of Uncertainty
4. Can Help Reduce the Burden of Student Debt
Employees struggling to pay down student debt often have difficulty contributing to 401(k) plans and achieving other financial goals, such as buying a house or car. By offering student loan repayment benefits and education, employers can reduce this burden and help employees plan for the future.
The good news is that these programs recently became more affordable. Under the Coronavirus Aid, Relief and Economic Security (CARES) Act, employers can now provide $5,250 tax-exempt annually for an employee’s student loan repayment through 2025. That means employees won’t pay income tax on contributions made by their employers toward educational assistance programs, yet the employer also gets a payroll tax exclusion on these funds.
A growing number of employers are offering some form of loan repayment support. In 2021, only 17% of companies offered any of these benefits. In October 2023, 34% of employers offered student loan benefits.
Recommended: How Student Loan Benefits Can Help Retain Employees
5. Employees Want It
According to the PwC study, the vast majority of employees want help with their finances. Not only that, the stigma around getting help with finances appears to be lifting. In 2023, employees overall were less likely to be embarrassed to ask for guidance or advice about their finances than they’ve been in the past: Just 33% said they find it embarrassing, compared to 42% in PwC’s 2019 survey.
In Bank of America’s Workplace Benefits Report (which surveyed more than 1,300 employees and nearly 800 employers), 76% of employees said they felt that employers are responsible for their financial wellness.
6. Can Help Parents Save for Future College Expenses
In a June 2023 survey of 1,000 parents of teenagers by Discover Student Loans, 70% of subjects said they were worried about financing their kids’ college expenses. In addition, 68% of parents were concerned about the amount of debt their kids will be saddled with even after the parents offer up their own financial assistance.
Providing employees with much-needed information about 529 college savings plans and giving them a convenient way to contribute directly from their pay, can go a long way in helping to relieve the stress associated with one of their top financial concerns.
While in the past, the options for using unspent 529 funds were limited (and often meant facing tax and penalty consequences), the SECURE 2.0 Act allows savers to roll unused 529 funds — to a lifetime limit of $35,000 — into the beneficiary’s Roth IRA, without incurring the usual 10% penalty for nonqualified withdrawals or generating any taxable income. The new rule went into effect January 1, 2024 and might come as a relief to any employees who worry about having excess funds stuck in a 529 should their child end up not needing the money.
Recommended: The Importance of Offering 529 Plan Contributions in an Employee Benefits Package
7. Helps to Clarify Confusing Financial Topics
Many young professionals want to buy their first home, but they don’t know how to save for a down payment or secure a mortgage. New to the workforce, they also struggle to understand financial topics they weren’t taught in school, such as income tax deductions (especially as they get married and have children), the necessity of life insurance, and wealth management and investing.
At the same time, older employees might feel overwhelmed by the financial options available to them. With educational resources and access to experts through a financial wellness program, employees can find the information they need from vetted and trusted sources. In PwC’s survey, 68% of employees said they use their employer’s financial wellness services such as coaching, workshops or online tools.
8. Protects Employees
Sometimes healthcare benefits just aren’t enough. In the event of a health emergency, employees need to be prepared for insurance deductibles and other unexpected costs. Solid financial preparations can prevent them from dipping into savings or making hardship withdrawals from 401(k) plans. Those withdrawals can not only damage their prospects for long-term financial stability, but also create administrative headaches for HR.
Providing an automated emergency savings program is fast becoming a way for employers to help provide a foundation for financial well-being for workers. These plans allow employees to make paycheck contributions to a dedicated account (possibly with a company match), and can help make your workforce more financially resilient in the face of life’s “What Ifs.”
Recommended: How Much Should Your Employees Have in Emergency Savings?
9. Enhances Your Organization’s DEI Efforts
These days, many employers of all sizes have a diversity, equity and inclusion (DEI) strategy or program in place to increase inclusion in the workplace. Offering financial wellness benefits to employees is yet another way to foster a more equitable company culture.
The reason is that financial wellness benefits can help level the playing field by helping to empower minorities and underrepresented groups, who may have more financial stress and encounter more barriers to economic opportunities. Giving all employee populations access to programs that can help them buy their first homes, pay down student debt, save for emergencies, and invest for the future allows them to build wealth for generations to come.
Recommended: How to Support Your Low-Wage Workforce
10. Helps Employees Plan for Retirement
Employer-sponsored retirement plans can help to ease the financial stress that stems from retirement planning. In addition to offering a retirement plan, you might also provide education programs on planning for retirement, understanding different types of accounts available, and best places to get started based on age and goals.
In addition, you might consider instituting a 401(k) match for their student loan payments. Thanks to a provision in Secure Act 2.0 (that went into effect at the start of 2024), companies can match employees’ qualified student loan payments with contributions to their retirement accounts, including 401(k)s, 403(b)s, SIMPLE IRAs, and government 457(b) plans. With this benefit, employees won’t need to make the decision regarding whether to contribute to their 401(k)s or make student loan payments.
Recommended: How Does an HR Team Implement a Student Loan Matching or Direct Repayment Benefit?
The Takeaway
Financial stress is a major concern for today’s employees, and something a growing number of workers want their employers to help with. Providing support for financial wellness can help boost employee engagement and retention, stave off mental and physical health concerns, help your company recruit top talent, and even lead to a more inclusive and equitable workplace.
SoFi at Work can help. We provide the benefit platforms and education resources that can enhance financial wellness throughout your workforce.
Photo credit: iStock/Inside Creative House
Products available from SoFi on the Dashboard may vary depending on your employer preferences.
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score provided to you is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
Advisory tools and services are offered through SoFi Wealth LLC, an SEC-registered investment adviser. 234 1st Street San Francisco, CA 94105.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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If you’re like most people embarking on a home-buying journey, one of your first steps will be finding a mortgage lender. There’s a lot to consider when it comes to choosing the right one — everything from interest rates, loan types and fees to service and experience.
When comparing lenders, it’s worth taking your time and choosing carefully. Purchasing a home is a big step, and you want a knowledgeable lending partner by your side as you weigh your financing options and navigate the paperwork involved. A good mortgage lender is a valuable resource and can make the home-buying process easier and less stressful. Let’s take a look at the steps you can take to find the right lender fit for you.
How to Find a Mortgage Lender
There are several types of lenders you can look to for securing your home loan, with the most popular being direct lenders and mortgage brokers.
Direct lenders. Banks, credit unions and mortgage companies are considered direct lenders and handle the entire mortgage process from origination to closing.
Mortgage brokers. Mortgage brokers work independently with a variety of loan originators, including direct lenders, to help clients find a mortgage that fits their needs.
Which type of mortgage lender you choose depends on your personal preference, the type of loan you’re looking for and your financial situation. There are many factors to consider when comparing your options. While interest rates are certainly a big one, there are other things to think about, such as fees, loan products, the process and the lender’s experience and reputation.
Here are some tips for choosing the right lender and how to best set yourself up for mortgage success.
Starting the Loan Certification Process
When choosing a lender, look for one that offers a written letter or certification you can provide to sellers to let them know you are qualified. This gives you a clear picture of your buying power and can help you make a stronger offer on a home. When you work with a lender that provides this, you’re doing much of the legwork involved in obtaining a mortgage contract without actually finalizing it.
Choosing Pennymac as your lender gives you access to our unique BuyerReady Certification process. This certification gets you even closer to your new home by confirming precisely how much of a mortgage you will qualify for.
While a BuyerReady Certification does not guarantee a closing, it is a conditional approval based on the information you provide us through the formal loan process. You’ll have peace of mind knowing your borrowing limit and be able to show realtors and sellers that you’re serious about purchasing. To receive a Pennymac BuyerReady Certification, you’ll submit a mortgage application and financial documents, which a Pennymac Loan Expert will review.
Here are some of the benefits of having a BuyerReady Certification:
Shows sellers, realtors and lenders that you’re a serious homebuyer
Helps inform your decision-making in terms of how much you can spend on a home and the types of financing you’ll be able to qualify for
Gives you a competitive advantage over homebuyers who don’t have it
Important Mortgage Considerations
Whether you begin your hunt for the perfect lender and loan by visiting your local bank, searching online or surveying your family and friends, here are some key factors you’ll want to consider.
Interest Rates
Interest rates are among the most important factors to consider when comparing lenders. Your interest rate will determine how much you have to pay for your home loan, so take time to do the math when examining your options. Even a seemingly small difference between rates, such as an additional .5%, can add up to a considerable increase in your monthly payment. Over a 30-year term, you could be paying tens of thousands of dollars more in interest.
While interest rates aren’t the only factor to look at when choosing a lender, they are a significant one. Select a lender that offers a range of competitive rates and terms and will quickly lock in a rate when you find the one that works best for your budget.
Down Payment and Mortgage Insurance
Most, but not all, home loans will require a down payment. A home down payment is money paid upfront for the home at closing and is a percentage of the home’s purchase price.
A conventional fixed-rate mortgage may require a down payment of as little as 3%. A Federal Housing Administration (FHA) mortgage has a minimum down payment of 3.5%, while the U.S. Department of Veterans Affairs offers loans with 0% down.
When comparing mortgage lenders, be sure to inquire about which loans they offer, especially if you’re interested in a non-conventional loan, such as a FHA or VA loan.
Keep Mortgage Insurance in Mind
While there is flexibility in how much of a down payment you make, if you have a conventional loan and do not put at least 20% down, you’ll have to pay for private mortgage insurance (PMI). This is a policy that protects your lender if you fall behind on your payments or end up in foreclosure. It is paid monthly on top of your regular mortgage payment.
Lenders partner with certain PMI providers and may use different calculations to determine your PMI premium. If you anticipate that you’ll be paying PMI, be sure to factor those premium charges into your cost comparisons. Conventional mortgage insurance can be priced quite aggressively, especially if the borrower has a solid credit score. It’s a great option for those who want to keep cash in the bank for investing and/or reserves.
If you opt for an FHA loan, mortgage insurance — similar to PMI — is always required at first. How much and how long you’ll have to pay the extra monthly premium depends on the amount of your down payment. VA loans do not require any type of mortgage insurance but may have other mandatory fees.
Fees
When comparing lenders, you’ll want to specifically evaluate rates, as well as origination fees and discount points, which can vary depending on who you choose. The homebuyer usually pays the fees, although sometimes a seller will agree to a concession and pay for some. Don’t be afraid to negotiate any closing costs. See if the lender you’re considering will work with you to reduce some fees or make other favorable compromises.
Prepare for Meeting with a Loan Officer
Once you find a prospective lender, you’ll meet with a loan officer or expert in person, through email or over the phone to discuss your mortgage options. Your loan officer will help determine your short and long-term goals with your home purchase and offer options to tailor your loan to your current financial situation. This meeting will provide a foundation for your loan officer to match you with a home loan that meets your needs.
Being prepared will help you make the most of your meeting and facilitate the mortgage process. Before meeting with your loan officer, here are some things you can do.
Improve Your Credit Score
Your credit score is a major factor in determining what kind of loans you may qualify for and your interest rate. A lender will want to be confident that you’ll be able to repay your loan. Your credit score is based on the data in your credit report and is a numerical rating based on your credit history. It takes the following into account:
Your bill-paying history
Total amount of current unpaid secured and unsecured debt
Your open loan accounts
How long you have had your loan accounts open
Credit account limits
Collections, charge-offs and any derogatory debt
Typically, the higher your credit score, the more loan options you will have. A lower credit score can mean that mortgage choices may be limited to non-conventional loans with broader qualification requirements.
The following are three steps you can take to help boost your credit score:
Check your credit report. Request free credit reports from each major credit bureau (Equifax, TransUnion and Experian) and review them for accuracy.
Pay bills on time. Late payments for credit cards and personal or auto loans can negatively impact your credit score. Making consistent on-time payments is one of the most influential credit score factors. If this is an area of concern, consider setting up automatic payments and commit to paying at least the minimum amount due each month.
Reduce credit utilization ratio (CUR). Demonstrate responsible credit management by lowering your credit card balances as much as possible. Try to keep your credit utilization ratio below 30%, which indicates that you are using a smaller portion of your available credit. Calculate your CUR as follows: Credit Utilization Ratio = (Total Outstanding Balances on Credit Accounts/Available Credit/Total Credit Limit on Accounts) x 100.
Organize Your Finances and Documents
To prepare for your loan officer meeting, determine how much money you have for a down payment, as this will be important when evaluating your loan options and monthly payments. You will also be required to submit numerous financial documents, including:
Photo ID
Pay stubs
Tax returns and W-2s and/or 1099s
Bank statements
All the paperwork may not be necessary during your initial meeting. Still, a jumpstart on document-gathering can help streamline the mortgage application process when your loan officer is ready to review them.
Understand Which Loan Is Right for You
While your lender will look at your complete financial picture before presenting — and explaining — your mortgage options, it is a good idea to have a basic understanding of the choices available. The following are the most common types of home purchase loans:
Each type of loan has its benefits and qualification requirements. When comparing home loans, you’ll want to think about:
How long you intend to stay in the loan
Your down payment and credit score
Your income stability
How much you intend to borrow
How long you plan to stay in and/or own the home
Your future plans, e.g., will you need more space for children or aging parents?
Your budget
Assess Your Budget
After you apply for your mortgage, you’ll go through the underwriting process, whereby all your financial documents will be examined and verified. Because the loan officer will ultimately determine how much you can borrow based on your budget, it’s crucial to provide them with the most accurate information upfront during the application process. Providing inaccurate information before going into processing can impact your qualification on the back end. Taking these steps before your loan officer meeting may help improve your chances that you’ll receive a loan approval:
Review your debt-to-income ratio (DTI) with a licensed loan officer. Your DTI is determined by how much recurring monthly debt you have compared to your monthly gross income. Look at your credit card and loan payments. Having less of your monthly income allocated to debt is a positive indicator of being able to qualify for a loan.
Establish how much you can put down on a home. The higher your down payment, the less you’ll have to borrow.
Determine how much you can afford to pay every month. Your new home expenses are not limited to your mortgage. Consider other costs such as:
Closing costs
Insurance
Property taxes
Potentially higher utility expenses
Any applicable mortgage insurance
Homeowners association fees
You’ll also want to think about how your new mortgage will affect your long-term savings goals, such as saving for retirement or your child’s education.
Questions to Ask the Loan Officer
Whether you’re a first-time homebuyer or a seasoned homeowner, the mortgage process may seem a bit overwhelming. Meeting with a licensed loan officer is an opportunity to get your questions answered so you can better understand the process, the loans available and the fees involved.
The following questions are a starting point for gathering information from your loan officer:
What types of home loans do you offer? Which do you think would best fit my needs?
What are the loan rates, terms and eligibility requirements?
What is the required minimum down payment amount for the different loan options?
Will my loan require mortgage insurance?
Is there a prepayment penalty if I want to pay off my loan early?
Do you offer a letter, certification, pre-approval or something similar I can provide sellers to validate my qualifications?
What will my closing costs be?
Can I lock in my interest rate?
Who will be my primary contact? Will it be you or someone else once the loan moves to underwriting?
Can I buy discount mortgage points? How long will it take to recoup them?
These are fees paid at closing that can help you lower your monthly mortgage payment.
How long is the mortgage process? When can I expect to close?
Will the loan closing take place in person or online?
Take your time to ask all the questions you need. A mortgage is a significant financial commitment, and you want to be confident that you’re making the most informed decision. If your loan officer is impatient or reluctant to answer your questions, that may be a sign that they’re not the right lender for you. A loan officer should be a borrower’s advocate and take the time to educate them throughout the process.
Interest Rate Lock
Mortgage rates constantly fluctuate, so asking for an interest rate lock is a smart idea if you find a good rate. An interest rate lock, also known as a locked-in rate, is a guarantee from a lender to give you a set interest rate when you apply for a mortgage. It protects borrowers against potential interest rate increases during the mortgage underwriting process.
Rates can generally be locked for an option of 30, 45, 60 or even 90 days. They are usually locked after the loan application has been reviewed and before underwriting. Lenders have different policies regarding rate locks, including fees, so inquire about policies when comparing lenders.
How Long Is the Process?
The mortgage loan timeline, consisting of a BuyerReady Certification, applying for the loan and underwriting, varies from 30 to 60 days or longer. Some factors that hinder the mortgage process include:
When borrowers do not have all their documents in order or provide inaccurate or incomplete information
When borrowers have more complex situations, such as credit issues
When lenders experience delays obtaining verifications, such as your credit history from the credit bureaus, rental records from a landlord or employment information
Stricter regulations that require lenders to accommodate more compliance checks
While some delays may be beyond your control, here are a few tips that could help expedite the loan process:
Gather as many financial documents as possible before applying for the loan
Do not omit any required information
Respond promptly to your lender’s questions or documentation requests
Stay in frequent communication with your lender and address any issues quickly
Try to avoid making any major financial changes during this time, such as changing jobs or taking on significant new debt
Get a List of All Paperwork Needed
Submitting documents is a requisite part of the home loan application and approval process. All lenders require certain documents to verify your financial and personal information to assess your creditworthiness and ability to repay your loan. The documentation will give your lender insight into your financial situation, income, assets and liabilities. While you should check with your lender to see what specific documentation they will need, at a minimum, lenders will typically ask for:
Employment verification, including pay stubs
Social Security, pension or retirement income, if retired
Evidence of any other forms of income, such as child support
Tax returns for the past two years
Bank statements for your checking and savings accounts
Statements for other assets like your investment and retirement accounts
Student loan details
Information on any debt you have, such as auto or student loans
Gift letter, if family members are contributing funds toward the down payment
Rental payment history, if applicable
There’s a lot that goes into choosing the right lender. But finding one that offers a loan that aligns with your financial goals and provides a positive borrowing experience is essential. With some due diligence, you’ll find a reputable lender to guide and support you through the mortgage process as you make the move toward your next home.
As a top national mortgage lender, Pennymac has loan experts who specialize in purchase loans to help homebuyers through the mortgage process and ensure a seamless home-buying experience. Plus, they can help you get BuyerReady Certified so you’ll know how exactly much money you can borrow and be more confident when looking for a home. Interested to learn more about what Pennymac can do for you? Get a custom instant rate quote today.
Applying early decision to your top-choice college can give you an admissions advantage. But you’ll want to keep in mind that this comes with a binding agreement — if you get accepted, you are obligated to attend that school.
There are some acceptable reasons for backing out of an early decision offer, like a change in your financial or personal circumstances. But if you simply have a change of heart, you will likely face negative consequences, such as losing any deposits and potential reputation issues with other schools.
Before applying to a college early decision, you’ll want to make sure you understand the commitment you’re making. Read on to find out if early decision is legally binding and how you can get out of early decision without facing penalties.
What Is Early Decision?
Early decision is a college application process in which students apply to their preferred college early in their senior year of high school, typically by November 1 or November 15, depending on the school.
When you apply early decision, you are agreeing that, if accepted, you will attend that school the following fall. As a result, you should not apply to multiple schools under early decision — if you are caught, it can result in one or both schools revoking your acceptance letters.
Colleges let early decision applicants know if they were accepted or not in mid to late December, giving students enough time to apply to other schools should they get rejected. Typical college application deadlines are in early January to mid-February. 💡 Quick Tip: Make no payments on SoFi private student loans for six months after graduation.
Why Apply for Early Decision?
One of the benefits of applying to college early decision is being able to find out whether or not you’ve been accepted to the school at the top of your list early in the application cycle. If you get in, you can then take a deep breath and relax and not worry about the usual Senior year checklist.
Applying early decision also signifies your commitment to a specific college or university, which may give you a leg up in getting in. Indeed, colleges often have a higher acceptance rate for early decision applicants than for regular decision applicants. For example, Duke University accepted 16.4% of early decision applicants for the class of 2027, while regular applications experienced a 4.8% acceptance rate.
That said, early decision isn’t for everyone. If you’re not sure where you want to go to college, it’s probably not wise to apply early decision. If how to pay for college is a chief concern, keep in mind that you will not be able to compare financial aid packages from other schools if you apply early decision.
How Does Early Decision Compare to Other Admission Deadlines?
Early decision is just one of several college admission deadlines, each with its own pros and cons. Here’s a look at how early decision compares to other admission deadlines.
Early Action
Unlike early decision, early action is non-binding. Students must adhere to the same application deadline as early decision (November 1 or 15), but there’s no obligation to enroll if you’re accepted. Early action applicants can expect a response from the school by mid-December and don’t need to make a decision until May 1. You can apply to more than one school early action, since it’s non-binding.
Regular Decision
Regular decision is the standard application process with a later deadline, typically some time between early January and mid-February. It is non-binding, and students can apply to multiple colleges. Admission decisions for regular decision applicants are usually released in mid-March to early April and require a response by May 1.
Rolling Admissions
Colleges with rolling admission allow you to submit your application within a wide time frame, usually six months or so, and review applications as they come in. Typically, they will then send out admission decisions within four to six weeks, accepting students until all open slots for the incoming class have been filled. Schools with rolling admission generally start accepting applications around September 1 and continue well into the spring semester.
Is There a Penalty for Backing Out of Early Decision?
Early decision isn’t a legal contract, but backing out of an early decision agreement typically has consequences. If a college admits a student under an early decision plan, the expectation is that the student will enroll for the upcoming fall semester and withdraw any early action or regular decision applications from other schools.
Some schools actually require a deposit with your early decision application. If you back out of your agreement, you likely won’t get this money back.
Colleges also communicate with each other. If your early decision school lets other schools know you reneged on your agreement, it could have a negative impact on your applications to schools you are interested in attending.
There are exceptions, however. If you back out of an early decision agreement for a valid reason, you can likely get off the hook without any negative repercussions. For example, you may be able to break your agreement without issue if you receive a financial aid package that’s different from what you anticipated, making it difficult for you to afford the cost of attendance.
Colleges also understand if extenuating circumstances prevent a student from honoring their commitment, including an illness or death in the family that leads a student to defer enrolling for a semester or year. 💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, federal Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and more.
What to Do if You Can No Longer Attend Your Early Decision School
If you find you have to back out of an early decision offer, you’ll want to get in contact with the college’s admissions department as quickly as possible. The sooner you let them know, the more likely they will be to work with you. They can let you know what your next steps should be. Without a good excuse, however, it is likely any deposits or payments you’ve made so far won’t be refunded.
If your reason for backing out is insufficient financing, you may want to discuss this with the college’s financial aid office. Some schools may be willing to reevaluate a student’s financial aid package if there has been a substantial change in the family’s financial situation.
If you stick with your withdrawal decision, you’ll next need to apply to other colleges, assuming you are still planning to go to college in the fall. Most colleges have an application deadline in January, so if you made the decision to back out of early decision sooner rather than later, you likely still have time.
Keep in mind that if you reneged on your early decision application without a valid reason, the school may share this information with other colleges. As a result, you may want to cast a wide net, including plenty of safety schools.
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The Takeaway
Applying to a college early decision requires making a commitment. However, the early decision agreement you (and your parents) sign is not legally binding. In other words, the college can’t force you to pay tuition and come to their school.
If you back out of your early decision agreement for a valid reason, such as not getting the financial aid offer you were expecting or unforeseen change in your circumstances, you may be able to get out of the contract without any negative consequences.
If, on the other hand, you back out simply because you changed your mind, you could potentially lose money (if the school required a deposit with your application) and the school may share this negative information about you with other colleges, doing harm to your reputation.
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.
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Turn your passion for playing video games into a career by attending one of the top game design colleges in the country.
Game design is an in-demand industry, with new video games for gaming systems, tablets, and phones continually being developed and released. Here, we’re exploring 20 of the best gaming development programs you might want to consider.
What to Look for in a Game Design School
If you’re looking into colleges for video game design, you’ll quickly realize that not all programs are created equally. Some schools only offer a class or two in game design, while others go deep into the field, offering internships and hands-on experiences.
If you’re interested in attending a game design school, it’s important to research schools and programs prior to making your decision. Make sure to look into the specific type of degree you want (undergraduate degree or certificate, for example), the length and commitment of the program, what current and former students have to say about the program, the helpfulness of the faculty and staff, and more.
Luckily, we’ve done the work for you and have narrowed down the top colleges offering game design programs.
The Top 20 Best Colleges for Game Design
There are several video game design colleges and programs in the United States. Here, we’ve created a list starting with the most affordable game design colleges all the way up to those with higher tuition expenses.
1. Shawnee State University
Shawnee’s Game Design School has made it on The Princeton Review’s Top Undergraduate Schools for Game Design list for 13 consecutive years, and with such low tuition, it might be a great bargain. Located in Portsmouth, OH, you can elect to study Game Programming or Game & Simulation Arts.
• 1 year of tuition: In-state $9,621.52; Out-of-state $16,156
2. University of Silicon Valley
USV is available on-campus in the heart of Silicon Valley or 100% online. The university offers Bachelor of Arts degrees in both Game Design and Game Art, as well as a Bachelor of Science in Game Engineering. After graduating, students are qualified for roles including animator, modeler, game writer, computer programmer, and more.
• 1 year of tuition: $27,850 for both in-state and out-of-state students
3. Arizona State University
ASU’s Bachelor of Arts in Interdisciplinary Studies offers a concentration in Computer Gaming with three tracks to choose from: Programming, Art, or Education. Located in stunning Tempe, AZ, courses in the program include Introduction to Graphics and Game Development, Fundamentals of Game Art, Game Engine Architecture, and 3D Modeling and Texturing.
• 1 year of tuition: In-state $12,051; Out-of-state $32,193
4. University of Utah
The Utah Division of Games, located in Salt Lake City, is a college for game designing that combines art, humanities, social science, and computational research and practice to prepare students for careers in the field. Students can choose from multiple gaming bachelor’s degrees, a master’s degree, and even a minor in gaming. The Bachelor of Science in Games includes courses like Survey of Games, Ethics in Games, and Alternative Game Development.
• 1 year of tuition: In-state $9400; Out-of-state $31,104 💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.
5. University of Southern California
USC’s Interactive Media & Games program offers three undergraduate options: a BFA in Themed Entertainment, a BFA in Game Development and Interaction, and a BFA in Game Art. Located in sunny Los Angeles, the program also offers four graduate degrees and nine minors.
• 1 year of tuition: $33,320 for both in-state and out-of-state students
6. Laguna College of Art and Design
Laguna College of Art and Design Game Art program, located in Laguna Beach, CA, prepares students for employment in any studio or software environment. Students learn the fundamentals of storytelling at every phase of the creation process, how to use a workflow methodology, and how to solve problems in concept challenges.
• 1 year of tuition: $37,500 for both in-state and out-of-state students
7. Full Sail University
Full Sail’s Interactive Technology Bachelor of Science Completion Program in Winter Park, FL offers a Game Design concentration that includes high-level game design and production courses that prepare students to work in game studios after graduation. Recognized as a Top Game Designs Schools by The Princeton Review, the program offers multiple start dates throughout the year and has an accelerated schedule for students looking to finish early.
• 1 year of tuition: $38,750 for both in-state and out-of-state students
8. Drexel University
Drexel University in Philadelphia offers a Bachelor of Science in Game Design & Production, and is recognized as one of the country’s top undergraduate game design programs. Students learn skills like scripting and storytelling, computer programming, computer graphics, animation, motion capture, and more.
• 1 year of tuition: $38,862 for both in-state and out-of-state students
9. Bradley University
Bradley University in Peoria, IL offers both a BA and a BS in Game Design. During your studies, you’ll have the opportunity to intern for a design company, participate in competitions, and show your work at an annual exhibit.
• 1 year of tuition: $39,248 for both in-state and out-of-state students
10. Savannah College of Art and Design
SCAD’s Interactive Design and Game Development degrees offer locations in Atlanta and Savannah, GA with the option to study abroad in Lacoste, France. Students can study at any of the three locations each semester, with the option to switch locations during their time in the program. Courses in the program include Digital Communication, Visual Culture in Context: Pre-Modern Global Perspectives, Aesthetics, and Core Principles: Game Art.
• 1 year of tuition: $41,130 for both in-state and out-of-state students
11. Michigan State University
MSU offers a Game Design and Development Program, a Top 10 Ranked program by The Princeton Review, that was founded in 2005. Students can choose from a Bachelor of Arts in Games and Interactive Media, a Minor in Game Design and Development, or a Serious Games Graduate Certificate. All students get the opportunity to design prototypes and conduct research on the effects of gaming.
• 1 year of tuition: In-state $16,051; Out-of-state $43,435
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12. University of California – Irvine
The Bachelor of Science degree in Game Design & Interactive Media at UC Irvine includes coursework in game programming, game design and development, visual design, interactive storytelling, data science, and game studies. Students graduate the program well-prepared for a career as a designer, developer, and industry leader. Students also get access to well-respected industry mentors.
• 1 year of tuition: In-state $17.205.74; Out-of-state $32,574
13. Champlain College
Champlain’s Bachelor of Science in Game Programming provides hands-on experience, with students collaborating to create and complete game projects. Located in gorgeous Burlington, VT, Champlain was named a “Most Innovative School” by U.S. News & World Report in 2022. Upon graduation, students are well-prepared to work in gaming studios.
• 1 year of tuition: $47,400
14. Quinnipiac University
Level up your creativity with Quinnipiac University’s Game Design & Development Program. Ranked as one of The Princeton Review’s Top Game Design Programs, students can choose a concentration to focus on, including programming, technology, design process, art, game studies, and more. Located in Hamden, CT, the program also gives students the chance to collaborate with partners both within and outside the community.
• 1 year of tuition: $50,400
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15. Rochester Institute of Technology
The Game Design, Development, and Arts program at RIT has been rated one of the best programs in this field of study by many organizations, including U.S. News & World Report. Degree options include 3D Digital Design, Film & Animation, Illustration, New Media Interactive Development, and more.
• 1 year of tuition: $56,136 💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a lower rate.
16. Worcester Polytechnic Institute
The Interactive Media and Game Development (IMGD) program at WPI dives into different aspects of gaming design, including digital painting, 3D modeling, writing for games, game audio, artificial intelligence, and virtual reality. Located in Worcester, MA, the program is recognized as one of the oldest gaming programs in the country.
• 1 year of tuition: $57,960
17. New York University
New York University’s BFA in Game Design has three primary areas of study: Game Studies, Game Design, and Game Development. You can also choose from one the following Production Areas: Programming, Video Design, Audio Design, and Game Business. Though tuition here is a bit higher than at some of the other schools, you can pay for it with a federal or private student loan.
• 1 year of tuition: $60,438
18. Carnegie Mellon
The Game Design undergraduate program at Carnegie Mellon in Pittsburgh, PA will give you a solid foundation in game systems and mechanics design, interactive narrative and character development, visual and audio asset creation, game programming, interface design and user testing, and collaboration and the iterative design process.
• 1 year of tuition: $62,260
19. University of California – Santa Cruz
In USC Santa Cruz’s Bachelor of Science in Computer Science: Computer Game Design, you’ll learn about the construction and design of interactive computer games. In your final year of study, you’ll be immersed in an intensive year-long game project sequence.
• 1 year of tuition: In-state: $30,567; Out-of-state: $65,148
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20. Cornell University
Cornell, another of the best game design colleges located in Ithaca, NY, offers a minor in Game Design that includes classes like Intro to Computer Game Architecture, Advanced Computer Game Architecture, Analytics-Driven Game Design, Graphics and Art, the Psychology of Gaming, and Human-Computer Interaction.
• 1 year of tuition: $65,204
The Takeaway
With so many game design colleges available, it might be hard to make a decision. Factors to keep in mind include the type of program, the location, the faculty and staff, and the cost.
However, don’t let cost deter you from going to the school of your choice. To pay for school, you can look into federal student loans, scholarships, and grants.
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
What’s the most affordable game design program?
Shawnee State University offers a nationally acclaimed game design program with low tuition. Tuition for in-state residents is $16,156 per year.
What’s the most expensive game design program?
Cornell University has one of the most expensive game design programs in the U.S. at over $65,000 per year.
How much does game design school cost?
Game design schools can range from $16,000 per year all the way up to more than $65,000 per year.
Photo credit: iStock/fizkes
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.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Hey, I’ve just been featured on CNBC and I want to say hello to all of my new readers. You can read the CNBC article here – 34-year-old mom dropped $50,000 to cruise the world with her family: ‘It was some of the best money I ever spent’ If you are a new visitor –…
Hey,
I’ve just been featured on CNBC and I want to say hello to all of my new readers.
You can read the CNBC article here – 34-year-old mom dropped $50,000 to cruise the world with her family: ‘It was some of the best money I ever spent’
If you are a new visitor – welcome to Making Sense of Cents!
I have received many emails about how I was able to afford this trip. I have a free How To Start A Blog course that you can sign up for here. I also talk about this below and how I’ve been able to earn over $5,000,000 blogging over the years.
If you want to read more about my world cruise trip, I recommend reading Around-The-World Cruise With A Kid (25+ Countries In 4 Months!).
Here are some blog posts that you may find helpful and enjoy:
If you have any questions, please leave a comment below or send me an email.
Thanks for stopping by.
-Michelle Schroeder-Gardner
—-
In addition to reading the CNBC article linked above, I also want to talk about how I grew a blog that has earned me over $5,000,000. I know I will get a lot of questions, so I figured it’s best to lay it all out right here 🙂
What started as just a hobby turned into one of the most life-changing things I’ve ever done – that’s starting my blog, and learning how to make money with it.
Since learning how to monetize a blog over 10 years ago, I have now earned over $5,000,000 from my site. This is still hard for me to believe, and I’m the one who’s lived it!
In the beginning, all I was doing was tracking my own personal finance progress as I finished school and started paying off my student loans. Blogging was a very new concept to me at the time – I heard about it from a magazine – and people were just learning how to monetize blogs back in 2011.
Most bloggers started back then with display ads and sponsored posts, but the options have only increased.
Because of all of the new ways to make money blogging, like affiliate income and selling your own products, you can make somewhat passive income as a blogger.
Passive income is my favorite way to make money because it makes blogging even more flexible and something I can do as I work from home, travel, and work whenever I want.
Blogging has changed my life for the better, and I’m now earning thousands of dollars a month doing something I love.
Learning how to monetize a blog takes work and time, but it’s 100% possible to do. I started earning money after just six months of blogging, and I didn’t even set out to make money when I created Making Sense of Cents. Just think of the potential if you start out knowing that making money blogging is possible!
Starting my blog is one of the best things I’ve ever done for my work, personal, and financial life. And, I urge anyone who is interested to start a blog and learn how to monetize it.
How I earned my first income from blogging
Many of my readers have heard this story, but I love sharing it because I started out like many of you, except I had no idea that blogs could make money. When I started Making Sense in August of 2011, I simply wanted a way to keep track of my financial progress and meet others who had similar goals.
As I started getting to know other bloggers in the community, a blogger friend of mine connected me with an advertiser who was willing to pay me $100 for an advertisement.
I couldn’t believe someone would pay me $100 to advertise on my site!
While it wasn’t a lot of money, especially considering the amount of time and work I put towards my blog in those 6 months, it was very motivating to see that something I loved doing could actually make money.
After that first $100, I started doing a lot of research on how to monetize a blog, and my blogging income quickly grew from there.
One year after I started my blog, I was earning around $1,000 a month, and I was making around $10,000 monthly two years after I started Making Sense of Cents.
My income only continued to grow, and I am still earning a healthy income from this website today.
How To Start A Blog FREE Course
If you want to learn how to monetize a blog and you haven’t started your blog, then I recommend starting with my free blogging course How To Start A Blog FREE Course.
Here’s a quick outline of what you will learn in this free course:
Day 1: Reasons you should start a blog
Day 2: How to determine what to blog about
Day 3: How to create your blog – in this lesson, you will learn how to start a blog on WordPress, and my tutorial makes it very easy to start a blog
Day 4: How to monetize a blog – this is where you learn about the many different ways to make money blogging!
Day 5: My tips for earning passive income from your blog
Day 6: How to grow your traffic and followers
Day 7: Miscellaneous blogging tips that will help you be successful
This is delivered directly to your email inbox, and you will learn how to grow a blog from scratch.
Start with a plan for your blog
Sure, you can start on a whim, and that’s kind of what I did, haha.
But, I do think that creating a plan is a good idea if you want to learn how to monetize a blog. This can help you get an organized start, identify your blog’s niche, decide on your blogging goals, find opportunities for blogging income, and more.
It wasn’t until 2015 that I finally created a blogging plan (that’s 4 years after I started!), and my blog income grew significantly after that.
I credit that growth to creating a plan!
Having a plan would have been a huge help in the beginning, and I wish I would have started with one. I probably missed some income opportunities because I had no real plan or direction in the first couple of years.
Since creating a blogging plan, I became more focused on goals and motivated toward improving and building Making Sense of Cents.
Here are some questions that you may want to ask yourself when creating a plan for your blog:
What will you write about on your blog?
How do you want to make money with your blog?
What will you do to reach readers on your blog?
What are your goals for your blog?
Thinking about, researching, and answering these questions will help guide you on your journey and help you decide what to do next.
Write high-quality and engaging blog posts
Your blog’s content is extremely important. This will be what attracts your readers, has them coming back for more, earns you blogging income, and more.
Now, you don’t need to be an expert or need a degree to start talking about a subject, but you do need to be knowledgeable or interested in what you are talking about. And, always be truthful! This will show in your writing and actually help your readers.
To write high-quality content on your blog, here are some tips:
Figure out exactly what it is that you’d like to write about and why you think the content is important. Being passionate about a subject will give you the motivation to write content that people want to read. Just think about it: If you don’t enjoy writing your content, then why should you expect someone else to want to read it?
Ask your audience what they want you to write about. Many of my best ideas come from expanding on reader questions.
Research your blog topics by reading news articles, going to a library, searching for statistics and interesting facts, and more.
If your blog posts are more personal in nature, then dig deep and share your thoughts, and be personable in your writing – your readers want to hear your story!
Write long, helpful content. Sure, some great content may only be a few hundred words, but to be as helpful as possible, long content is usually the best. My content is usually over 2,000 words, and this article is around 5,000. Now, you don’t want to just write a lot of fluff content in order to get more words in – you want to actually be helpful!
Reread your content. I used to read my content 10 times or more before I would publish it. Now, I have an editor who makes sure I’m always publishing high-quality content.
Network, network, network
If you want to learn how to monetize a blog, then networking can be extremely helpful.
Networking can mean:
Making friends with other bloggers
Attending blogging conferences
Sharing content that other bloggers have written
Following other bloggers in your niche on social media
Signing up for other bloggers’ newsletters
Joining blogging groups on Facebook
Some bloggers don’t do any of these things and purely see other bloggers as competition. I don’t believe this is the correct way to approach blogging because you will hold yourself back immensely!
Networking is important because it can help you enjoy blogging (friends are nice to have, right?!), teach you new ideas (such as how to make money blogging or how to grow a blog), make valuable connections, and more.
Keep in mind that networking is even how I earned my very first $100 blogging. My blogging friend connected me with an advertiser, which helped changed my blogging journey.
I have learned a lot about blogging from the blogging community, and the people I’ve connected with have been a tremendous support as I’ve grown my blog.
Be prepared to put in a lot of hard work
Starting a blog is relatively easy. But, growing and learning how to monetize a blog takes a lot of work.
You’ll have to:
Start a blog, design it, create social media accounts, and more
Write high-quality blog posts
Attract an audience of readers
Monetize your blog
Continue learning about blogging
And more
Even when I was just a new blogger and had no plans of making money blogging, I was still spending well over 10 hours a week on Making Sense of Cents.
When I was working my full-time day job and earning an income from my blog, I was working around 40-50 hours a week on my blog on top of my day job!
Now that I blog full-time, my hours vary. Some months I hardly work, and there are other months that I may work 100 hours a week.
It’s not easy, and there’s always something that needs to be done.
But, I absolutely love blogging, which makes the hard work a little less tough.
How to monetize a blog: 4 different ways
There are many different ways you can monetize your blog, including:
Affiliate marketing
Advertisements and sponsorships
Display advertising
Create your own product, such as an ebook, course, physical or online products, and more
You could choose to monetize your blog using all of these methods, or even just one. It’s just a personal decision.
For me, I like to be diversified and monetize in many ways, so I do them all.
Below, I am going to dive a little deeper into each way to make money blogging.
1. Affiliate marketing
Affiliate marketing can be a great way to make money blogging because if there is a product or company that you enjoy, all you have to do is review the product and share a unique affiliate link where your readers can sign up or make a purchase.
In fact, this is my favorite way to monetize a blog. I enjoy it because it can be quite passive – I can create just one blog post and potentially earn an income from it years later. This is because even though a blog post may be older, I am still constantly driving traffic to it and readers are still purchasing through my affiliate links.
Affiliate marketing is a blog monetization method where you share a link to a product or company with your readers in an attempt to make an income from followers purchasing the product through your link.
Here are some quick tips so that you can make affiliate income on your blog:
Use the Pretty Link plugin tocleanupmessy-lookingaffiliatelinks. I use this for nearly all of my affiliate links because something like “makingsenseofcents.com/bluehost” looks much better than the long, crazy-looking links that affiliate programs usually give you.
Provide real reviews. You should always be honest with your reviews. If there is something you don’t like about a product, either don’t review the product at all or mention the negatives in your review.
Ask for a commission increase. If you are doing well with a particular affiliate program, ask to increase your commissions.
Build a relationship with your affiliate manager. Your affiliate manager can supply your readers with valuable coupons, commission increases, bonuses, and more.
Write tutorials. Readers want to know how they can use a product. Showing them how to use it, how it can benefit them, and more are all very helpful.
Don’t go overboard. There is no need to include an affiliate link 1,000 times in a blog post. Include them at the beginning, middle, and end, and readers will notice it. Perhaps bold it or find another way for it to stand out as well.
You can learn more about affiliate marketing strategies in my course Making Sense of Affiliate Marketing.
2. Advertisements and sponsorships
Advertising on a blog is one of the first ways that bloggers learn how to monetize a blog. In fact, it’s exactly how I started!
This form of blogging income is when you directly partner with a company and advertise for them on your website or social media accounts.
You may be writing a review for them, a tutorial, talking about their product or company, taking pictures, and so on.
If you want to learn how to increase your advertising-income, I recommend taking my Making Sense of Sponsored Posts course.
3. Display advertising
Display advertising is one of the easiest ways to make money blogging, but it most likely won’t earn you the most, especially in the beginning.
I’m sure you’ve seen display ads before. They may be on the sidebar, at the top of a post, within a blog post, and so on.
The ads are automatically added when you join an advertising network, and you do not need to manually add these ads to your blog.
Your display advertising income increases or decreases almost entirely based on your page views, and once you place the advertisement, there’s no direct work to be done.
If you want to learn how to monetize a blog through display advertising, then some popular networks include Adsense, MediaVine, and AdThrive.
Personally, I use AdThrive for my display advertising network. I don’t have many display advertisements on my blog, but it is easy income.
4. Sell your own products
Another popular way to monetize a blog is to create a sell your own products.
This could be an online product, something that you ship, and so on, such as:
An online course
A coaching program
An eBook
Printables
Memberships
Clothing, candles, artwork, hard copy books, and anything else you can think of
And the list goes on and on. I have seen bloggers be very successful in selling all kinds of things on their blogs.
What’s great about selling your own product is that you are in complete control of what you are selling, and your income is virtually unlimited in many cases.
I launched my first product about 5 years after I created Making Sense of Cents, which was a blogging course called Making Sense of Affiliate Marketing. I regret not creating something sooner because this has been an excellent source of income and has helped many people along the way.
Have an email list
If you really want to learn how to monetize a blog, I recommend that you start an email list from the very beginning.
I waited several years to start my email list, and that was a huge mistake!
Here’s why you need an email list right away:
Your newsletter is YOURS. Unlike social media sites, your newsletter and email subscribers are all yours, and you have their undivided attention. You don’t have to worry about algorithms not displaying your content to readers, and this is because they are your email subscribers. You aren’t fighting with anyone else to have them see your content.
The money is in your email list. I believe that email newsletters are the best way to promote an affiliate product. Your email subscribers signed up to hear what YOU have to write about, so you clearly have their full attention. Your email list, over any other promotional strategy, will almost always lead to more income and sales.
Your email subscribers are loyal to you. If someone is allowing you to show up in their inbox whenever you want, then they probably trust what you have to say and enjoy listening to you. This is a great way to grow an audience and a loyal one at that.
Email is a great way to deliver other forms of content. With Convertkit, I am able to easily create free email courses that are automatically sent to my subscribers. Once a reader signs up, Convertkit sends out all the information they need in whatever time frame I choose to deliver the content.
Attract readers
As a new blogger, you’ll want to find ways to attract a readership to your blog and your article.
No, you don’t need millions and millions of page views to earn a good living from blogging. In fact, I know some bloggers who receive 1,000,000 page views yet make less money than those with 100,000 monthly page views.
Every website is different, but once you learn what your audience wants, you can start to really make money blogging, regardless of how many page views you receive.
Having a successful blog is all about having a loyal audience and helping them with your content.
Even with all of that being said, if you want to learn how to monetize a blog, learning how to improve your traffic is valuable. The more loyal and engaged followers you have, the more money you may be able to make through your blog.
There are many ways to grow your readership, such as:
Write high-quality articles. Your blog posts should always be high-quality and helpful, and it means readers will want to come back for more.
Find social media sites to be active on. There are many social media platforms you can be active on, such as Pinterest, Facebook, Twitter, Instagram, TikTok, Youtube, and others.
Regularly share new posts. For most blogs, you should publish content at least once a week. Readers may forget about you if you go for weeks or months at a time without a blog post.
Guest post. Guest posting is a great way to reach a new audience, as it can bring new readers to your blog who will potentially subscribe to it.
Make sure it’s easy to share your content. I love sharing posts on social media. However, it gets frustrating when some blogs make it more difficult than it needs to be. You should always make sure it’s easy for readers to share your content, which means your social media icons should be easy to find, all of the info input and ready for sharing (title, link, and your username tagged), and so on. Also, you should make sure that when someone clicks on one of your sharing icons the title isn’t in CAPS (I’ve seen this too many times!).
Write better titles. The title of your post can either bring readers to you or deter them from clicking over. A great free tool to write better headlines is CoSchedule’s Headline tool.
Apply SEO strategies. SEO (search engine optimization) is not something I can teach in this small section, but I go over it below in another section.
Have a clean and user-friendly blog design. If you want more page views, you should make it as easy as possible for readers to navigate your blog. It should be easy for readers to find your blog homepage, search bar, blog posts, and so on.
Now, I also want to talk about helpful resources, courses, and more that can help you to learn how to grow your page views on your blog.
Below are some of my favorite blogging resources to help you improve your traffic:
Grow through SEO
SEO (search engine optimization) is how you get organic search traffic to your blog.
When you search a phrase on Google, you’ll see a bunch of different websites as the results. This is the result of these websites applying SEO strategies to their blog.
This is a great way for readers to find your blog, and SEO is important to pay attention to as you learn how to monetize a blog!
Below are some of my favorite SEO resources:
Stupid Simple SEO: This is my favorite overall SEO course, and one of the most popular for bloggers. I highly recommend taking it. I have gone through the whole course, and I constantly refer back to it.
Easy On-Page SEO: This is an easy-to-follow approach to learning on-page SEO so your articles can rank on Google. I have read this ebook twice, and it is super helpful.
Easy Backlinks for SEO: This ebook will show you 31 different ways to build backlinks, which are needed for SEO.
How To Get 50,000 Pageviews per Month With Keyword Research: This ebook shares the steps for keyword research so that you can get SEO traffic to your website.
Common questions about how to monetize a blog
Below, I’m going to answer some questions I’ve received about how to start a blog such as:
How many views do you need to monetize a blog?
How do beginner bloggers make money?
Why do bloggers fail?
How many posts should I have before I launch my blog?
How many times a week should I post on my blog?
How many views do you need to monetize a blog?
The amount of page views needed to make money blogging varies, and there is no magic number that you should be aiming for.
This is because it depends on so many factors, such as how you will monetize your blog, your niche, the number of email subscribers you have, the quality of your website, and more.
You may see success with 10,000 page views a month, or you may see success with over 100,000 page views a month. It simply depends on the factors above.
How do beginner bloggers make money?
Beginner bloggers can make money in many different ways, such as display advertising, affiliate marketing, creating their own products, and sponsorships.
You can start any of these right from the very beginning.
Display advertising is usually the easiest way to begin monetizing a blog, but the payoff is not very high, especially in the beginning when your page views are not high.
How many posts should I have before I launch my blog?
I recommend just launching your blog as soon as you have one blog post and a design. Building a huge backlog of blog posts isn’t usually needed, and it can prevent you from ever getting started!
How many times a week should I post on my blog?
The more blog posts you have, then the more traffic you may get. That’s because it’s more opportunities to show up in Google searches or share your posts on social media.
I recommend publishing a new blog post at least once a week. Anything less isn’t advised.
Publishing blog posts consistently is smart because readers know to expect regular content from you.
Why do bloggers fail?
Bloggers fail for many different reasons. These reasons may include:
Giving up too soon. It takes time to make money blogging, and sadly, many people give up just a few months into starting a blog.
Not publishing consistently. I recommend publishing content at least once a week, as described in the previous section. Some new bloggers may go months without publishing, and this will take them much longer to make money blogging as they are simply not dedicating enough time to their blog.
Not spending enough time learning about blogging. Blogging is not as easy as you may think. There is a lot to learn in order to make it work. You may need to learn about how to grow your blog’s traffic, how to monetize a blog, how to write high-quality content, and more.
Not having your own domain and self-hosting. If you want to make money blogging, I highly recommend owning your domain name and being self-hosted. The longer you put this easy step off, the longer it will most likely take for you to make money blogging. You can learn more at How To Start a WordPress Blog.
And much more. Blogging is like any business – there are things to learn, things to improve on, and more.
How do I start a blog?
If you have any other questions related to starting a blog, I recommend checking out What Is A Blog, How Do Blogs Make Money, & More. In this article, I answer more questions related to blogging such as:
How do I come up with a blog name?
What blogs make the most money?
How do you design a blog?
How many views do you need to make money blogging?
How many blog posts should I have before launching?
There are many types of scholarships, from academic to athletic and need-based to identity-specific scholarship programs. Recipients typically don’t need to repay the funds they receive in the form of scholarships, which makes this type of funding particularly appealing.
In a 2023 Sallie Mae survey, How America Pays for College, it found that 61% of U.S. families used scholarship funds to partly pay for college. The average scholarship award amount across school, state, and company or nonprofit sources was $8,005.
Despite this available aid, 29% of students who didn’t use scholarship funding said they didn’t apply because winning didn’t seem plausible. However, with so many different types of scholarships available, you might find one that can help you pay for school.
1. Academic Scholarships
Academic scholarships, also referred to as merit scholarships, are awarded to students who’ve demonstrated academic excellence or exceptional skill in an area. For example, a merit-based scholarship might be based on an applicant’s cumulative GPA.
This kind of scholarship is provided by numerous sources, including:
Schools
Some high schools provide academic scholarships to their top graduating seniors. Additionally, the college you’re attending might have scholarships available.
Federal
Nationally recognized organizations offer federal academic scholarships based on different criteria and specifications.
Local
Students might also find scholarships sponsored by their state, county, city, or local associations. 💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.
2. Athletic Scholarships
Athletic scholarships are offered to student-athletes by their college. These full- and partial-scholarship programs are offered to a select few students who have shown exceptional skill in their sport.
Typically, when participating in an athletic scholarship you’re expected to maintain satisfactory academic performance to continue receiving funding. Note that fewer than 2% of high school athletes are awarded athletics scholarships to compete in college.
Recommended: Balancing Being a Student Athlete & Academics in College
3. Scholarships for Extracurriculars
Students who participate in extracurricular activities might be able to find scholarship opportunities for their unique interests. For example, scholarships for students who dance, act, draw, or participate in Boy Scouts, Key Club, and more exist.
4. Student Specific Scholarships
There are many types of scholarships that are based on the student’s personal situation or affiliation. Some of these kinds of scholarships include:
Religious Scholarships
For example, your specific religious denomination. These scholarships are generally available to students who are actively involved in a faith-based community, or who are pursuing religion-based college courses.
First-Generation Scholarships
Students who are the first in their family to attend college may qualify for specific scholarships.
Legacy Scholarships
These scholarships are exclusively for students whose parents or close family members are alumni of the same institution.
Identity-Based Scholarships
In addition to the student-specific scholarships discussed above, scholarship programs are also available based on a student’s personal identity. Some identity-based categories include BIPOC, Women, and LGBTQIA+.
Hispanic Heritage
Scholarships are available based on heritage. Students of Hispanic or Latinx heritage may be able to qualify for specific heritage-based scholarships like those offered by the Hispanic Scholarship Fund.
African American
Specific scholarships are available for African American students as well.
Women
Scholarships for women are another subset of options.
LGBTQIA+
LGBTQIA+ identifying students may be eligible for scholarships as well.
Learning Disabilities
These scholarships are available to select students who have diagnosed learning and attention issues. For example, the National Center for Learning Disabilities offers scholarships.
5. Need-Based Scholarships
One of the most popular types of scholarships for college are need-based. These scholarships are accessible to applicants who have a demonstrated financial need, and a program might ask for proof, such as income documentation or FAFSA® information.
You can find need-based scholarships from national organizations, as well as within your state, local community, and even through your own school.
Recommended: What is Need-Based Financial Aid?
6. Employer Scholarships
Employer scholarships are offered to employees of a company or an employee’s college bound student. Aside from having an affiliation with the employer, students might need to meet other eligibility criteria to be selected for an award.
7. Military Scholarships
Private and public entities sponsor military scholarships for students who currently serve or have served in the U.S. armed forces. If you’re a first-time freshman and participated in Reserve Officer Training Corps, consider reaching out to your school’s ROTC officer to learn about your options.
8. STEM Scholarships
STEM scholarships are accessible to students who are pursuing a college education in a science, technology, engineering, or math discipline. Some scholarships programs are offered specifically to students who identify with a particular group; for example, STEM scholarships for minority students.
9. Scholarships Based on Major
Regardless of what you’ve chosen as your college major, there’s likely a scholarship suited for you. These scholarships are provided by some college departments, the school itself, or private organizations who want to encourage students to pursue a particular area of study.
10. No Essay Scholarships
This kind of scholarship explicitly doesn’t include a written essay or personal statement component. You might prefer this type of scholarship if writing isn’t your forte, but there might be another required component in its place, such as a video or other creative submission.
Applying for Scholarships
There are various types of scholarships for college, which means there are just as many different requirements and deadlines to stay on top of. When applying to a scholarship, double check that you meet the basic eligibility criteria as a student.
Depending on the type of scholarship, it might require a minimum GPA, or it might ask for proof that you have financial needs, for example. After confirming that you meet the applicant requirements, review the steps needed to apply.
Some scholarship programs might ask for a personal statement or other academic or creative submissions. Similarly, some might request additional paperwork as part of your application, like a copy of your school transcripts.
Finally, make sure you note each scholarship’s deadline and submit your application on time. The last thing you want is to have done all of the work only to be denied because of a missed deadline.
Alternatives to Scholarships
If you’d like to diversify your financial aid sources, there are alternative aid options, like loans for undergraduates and graduate students, as well as grants. To apply for federal financial aid, fill out the Free Application for Federal Student Aid (FAFSA) each year. Schools may also use the information provided on the FAFSA to award school-specific scholarships. Here are a few other options for paying for college.
Grants
Grants are provided by federal, state, school, and private sources. Like scholarships, they typically don’t need to be repaid.
Federal Student Loans
Federal student loans are available to undergraduate and graduate students, as well as parents of dependent undergrads. They’re funded by the U.S. government, and most federal loans don’t require a credit check. In addition to offering fixed rates, they provide access to income-driven repayment plans and loan forgiveness programs.
Private Student Loans
When scholarships, grants, and federal student loans aren’t enough to cover the total cost of college, a private student loan could help. These loans are funded by private lenders, and offer fixed- or variable-rate loans at different terms. These loans typically require a credit check or the addition of a creditworthy cosigner. Keep in mind that private student loans aren’t required to offer the same benefits, like income-driven repayment plans, as federal student loans.
The Takeaway
If you’re short on aid for your upcoming academic year, consider searching for unclaimed scholarships. There are a variety of scholarship types to consider, so you’ll likely come across at least a handful that you’re eligible for.
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.
SoFi private student loans offer competitive interest rates for qualifying borrowers, flexible repayment plans, and no fees.
FAQ
What are the three most common types of scholarships?
Common types of scholarships for college are merit-based scholarships, need-based scholarships, and athletic scholarships. However, within these categories are sub-categories of scholarships based on specific eligibility factors.
How many different scholarships are there?
There are millions of scholarships being offered each year. According to Educationdata.org, more than 1.7 million scholarships are awarded annually.
What are competitive scholarships?
Competitive scholarships are prestigious national scholarship programs. They are often merit-based and are awarded to exceptional students who’ve demonstrated academic excellence, leadership, and who are considered the nation’s top students.
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