Month: May 2024

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Starting a new business requires a good idea, customers to whom you can sell your product or service, and money to get you off the ground. A personal loan to start a business can be one option for funding, especially if you don’t yet qualify for a small business loan or you qualify for a personal loan with a low interest rate.

Here’s a look at the pros and cons of using a personal business loan to start your business as well as some alternatives to look into.

What Is a Personal Business Loan?

Personal loans to start a business are offered by some banks, credit unions, and online lenders. The borrowed funds are paid back with interest in regular monthly installments. While most loans will specify what you can spend the money on — a mortgage must be used to buy a house, for example — the sum you receive from a personal business loan can be spent in a variety of ways. It’s important to check with your lender about whether their personal loans can be used for business expenses, as some lenders do not allow it.

Your personal loan interest rate is based on a combination of financial factors, including financial history, income, and credit score. Generally speaking, the higher a person’s credit score, the more likely they are to receive a personal loan with favorable terms and interest rates. Applicants with lower credit scores may find it more difficult to qualify for low-interest rates. That’s because lenders tend to see them as at greater risk of defaulting on their payments and, to offset that risk, they might charge a higher interest rate.
💡 Quick Tip: Some lenders can release funds as quickly as the same day your loan is approved. SoFi personal loans offer same-day funding for qualified borrowers.

Why Might You Use a Personal Loan to Start a Business?

Taking out personal loans for business may present a number of benefits compared to some other alternatives.

Ease of Qualification

Banks offer personal business loans based on personal income and credit score. When you apply for a business loan, you’ll likely be asked for quite a bit of information during the application process, including your personal and business credit score, annual business revenue and monthly profits, and how long you’ve been in business. The longer your business has existed, the more likely you are to have a record of revenue and profit, and the more likely you are to qualify.

If your business is brand new, it can be tricky to get a business loan right off the bat, and it may be easier to qualify for a personal loan.

Faster Funding

How long it takes to get approved for a personal loan and receive funding will vary by lender. Online lenders are typically faster than banks and credit unions. However, you are likely to receive funding within seven business days.

By contrast, the process for a business loan can be much slower. For example, it can take 60 to 90 days to receive funding from a Small Business Administration (SBA) loan.

Can Have Low Interest Rates

Personal loan applicants with a positive credit history and a healthy credit score may be able to qualify for a low interest rate. In general, interest rates on personal loans can be much more competitive than those on other types of credit.

Credit cards, for instance — although not an inherently bad choice for business credit — can have higher interest rates than other types of lending options. They may also have penalties and fees that personal loans may not have, such as penalty annual percentage rates (APRs) that go into effect if you make a late payment, over-limit fees if you spend more than your credit limit, annual fees, and more.

Flexibility and Versatility

Personal loans have few restrictions on how you’re allowed to use the money you borrow. That means you can spend on anything from buying or renting a building to marketing materials to purchasing inventory, as long as your lender doesn’t restrict the personal loan funds to non-business purposes.

Recommended: 11 Types of Personal Loans & Their Differences

What Are Some Risks of Using a Personal Loan to Start a Business?

Despite the potential advantages of using a personal loan to help you start your business, there are also potential drawbacks to consider.

Some Lenders Don’t Allow Personal Loans for Business

Some lenders do place certain restrictions on how you spend your personal loan. Being upfront about your intentions to use it for business expenses and asking if that is allowed is a good idea. In some cases, it may not be. However, it’s far better to be honest about how you plan to use a loan than risk breaching the loan agreement. If you end up using a loan in a prohibited way, your lender could force you to repay the full amount of the loan with interest.

Can Mean a Smaller Loan

Personal loans generally offer borrowing limits as low as $1,000 and as high as $100,000 for larger personal loans. For small businesses, this might be plenty. But if you’re a larger business that needs more money, you may be better off looking for a loan that can better meet a business’ financial needs.

Can Have Shorter Repayment Terms

Lending periods for personal loans will vary. Typically you can find loans with term lengths of 12 months to five years, sometimes a bit longer. When compared to some small business loans, this is a relatively short period of time. Consider that for SBA loans, maximum terms can be as much as 25 years for real estate, 10 years for equipment, and 10 years for working capital or inventory.

Personal Credit Score and Assets Could be Affected

If you take out a personal loan and are unable to make monthly payments, you are putting your personal credit at risk. Missed payments may have a negative effect on your credit score, which can make it more difficult for you to access funding in the future.

Recommended: What Is Considered a Bad Credit Score?

May Qualify for Fewer Tax Deductions

In general, the interest you pay on a personal loan is not tax deductible. However, it may be if you use it for business purposes. This can get a bit tricky. You may only deduct interest on the portion of the loan that is used for business expenses. So if you use any of that money to remodel the bathroom in your home, for example, interest on that portion can’t be deducted.

Businesses are able to deduct interest from bank loans, vehicle loans, credit card debt, and lines of credit.

Personal Business Loans vs Small Business Loans

Borrowing money to pay for business expenses is a decision that takes some consideration. There are different reasons you might want or need a business loan, there are many lenders to choose from, and there are different lending options to compare. Here are some things to think about if choosing between a personal loan for business or a small business loan.

Factor to Consider Personal Loan for Business Small Business Loan
Use of funds Some lenders may not allow personal loan funds to be used for business purposes Specifically for business purposes — cannot be used for personal use
Qualification Personal creditworthiness determines approval, interest rate, and loan terms Lenders will require business financials, proof of time in business, and other details, in addition to possibly taking personal credit into account
Interest rate Depending on your creditworthiness, interest rate may be lower than other forms of credit, such as credit cards Depending on the type of loan, interest rates on SBA loans may be lower than some personal loans
Loan amount Up to $100,000 depending on the lender. SBA maximum loan amount is $5 million.

Some lenders may approve working capital loans for up to several million dollars
Funding time Depending on the lender, loan funds may be disbursed as soon as the day of approval or in up to seven days The SBA loan timeline is between 60 and 90 days from application to disbursement.

A working capital loan from a traditional lender may be approved quickly and funded shortly after approval

Tax deductibility Interest is not generally tax deductible Interest may be tax deductible in some cases

Recommended: Business Loan vs Personal Loan: Which Is Right for You?

Alternatives to Personal Business Loans

Personal loans may not be the best option for everyone and are not the only way you can fund your small business. You may also want to consider small business loans or a business line of credit.

Small Business Loans

Small business loans are offered through online lenders, banks, and credit unions. There are a variety to choose from that may be designed for specific purposes. For example, a working capital loan is designed to help you finance the day-to-day operations of your business. An equipment loan can help you replace aging technology and buy new equipment.

SBA loans are guaranteed by the Small Business Administration, whose aim is to help small businesses get off the ground and grow. That means if you aren’t able to make your payments, the SBA will step in and cover 85% of the default loss. By reducing risk in this way, the organization helps businesses get easier access to capital.

Shopping around for the best small business loan rates is a good way to compare lenders and find the one that works best for your unique financial needs.

Business Lines of Credit

A business line of credit is revolving credit, much like a credit card. You are allowed to borrow up to a certain amount, and you only pay interest on the amount you are currently borrowing — making this option more economical than a term loan for some business owners. As you repay the funds, the amount of credit available to you reverts back to the original limit and you can borrow the money again.

Another advantage to a line of credit over a term loan is the ability to use a check to pay vendors who may not accept credit cards.

Credit Cards

Credit cards, with a current average interest rate of more than 22%, tend to have higher interest rates than other types of funding. For example, the average finance rate for personal loans is about 12.49%, according to the Federal Reserve.

Also, credit cards are revolving credit. If you don’t pay off the balance each month, you can fall deeper into debt. Whereas, installment loans offer fixed monthly payments with a fixed end date.

Business credit cards may be a good choice for some business owners, though, to keep personal and business expenses separate. They may also offer rewards, perks, and bonuses that make them an attractive option.

Recommended: Breaking Down the Different Types of Credit Cards

Merchant Cash Advance

Funding for a merchant cash advance (MCA) is based on a business’ past credit card receipts. Technically not a loan, an MCA is an advance on future revenue. The business repays the MCA lender a percentage of its monthly sales revenue until the debt is paid in full.
💡 Quick Tip: Generally, the larger the personal loan, the bigger the risk for the lender — and the higher the interest rate. So one way to lower your interest rate is to try downsizing your loan amount.

The Takeaway

Can you use a personal loan to start a business? Short answer: Yes. Taking out a personal loan is one way to fund your small business needs, as long as your lender allows the funds to be used for business expenses. There are alternatives, though, including lines of credit and SBA loans.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

Photo credit: iStock/fizkes

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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.

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.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPL-Q224-1843090-V1

Source: sofi.com

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Nestled in the heart of the Great Plains, North Dakota offers residents a unique blend of rugged natural beauty, strong community ties, and a rich cultural heritage. From the vibrant urban atmosphere of Fargo to the serene charm of Bismarck, the state capital, North Dakota captivates with its distinct sense of tranquility. However there are cons to living in this state. In this ApartmentGuide article, we’ll uncover the pros and cons of living in North Dakota, so you can learn what life is like in “The Peace Garden.”

Renting in North Dakota snapshot

Population 783,926
Avg. studio rent $610 per month
Avg. one-bedroom rent $823 per month
Avg. two-bedroom rent $923 per month
Most affordable cities to rent in North Dakota Jamestown, Minot, Dickinson
Most walkable cities in North Dakota Grand Forks, Fargo, Minot

1. Pro: Expansive natural landscapes

North Dakota offers residents vast natural landscapes to explore and enjoy, including the Badlands, Theodore Roosevelt National Park, and the prairies of the Red River Valley. These expansive areas provide opportunities for outdoor recreation such as hiking, camping, and wildlife watching where you could see some bighorn sheep.

2. Con: Harsh winter weather

North Dakota experiences harsh winter weather conditions, with frigid temperatures, heavy snowfall, and strong winds posing challenges for residents. Cities like Minot and Williston often contend with blizzards and extreme cold snaps, leading to hazardous driving conditions and disruptions to daily life.

3. Pro: Low population density

North Dakota has a low population density, which contributes to a peaceful and uncrowded living environment. With fewer people per square mile compared to more densely populated states like California, residents enjoy spaciousness and a sense of tranquility.

4. Con: Limited entertainment options

North Dakota may have fewer entertainment options, particularly in terms of cultural attractions, dining establishments, and nightlife. Cities like Grand Forks and Fargo offer some entertainment venues and events, but residents may find a lack of diversity and variety in recreational activities compared to other populous states.

5. Pro: Strong job market

North Dakota’s strong job market is fueled by its thriving energy sector, as well as opportunities in agriculture, healthcare, and technology. Cities like Bismarck offer diverse employment prospects, providing stability and opportunities for career advancement.

6. Con: Geographic isolation

North Dakota’s geographic isolation, coupled with its low population density, can contribute to feelings of isolation and limited access to services and amenities. Rural towns and communities, such as Rugby and Devils Lake, may be far removed from major urban centers and regional hubs, leading to challenges in accessing certain services.

7. Pro: Affordable cost of living

North Dakota maintains an affordable cost of living, with lower housing costs, utilities, and overall expenses compared to many other states. Cities like Grand Forks and Minot offer residents access to affordable housing options, with median home prices and rental rates below the national average. For instance, the median home price in Grand Forks is $227,000 and the average rental price for a one-bedroom is $897. These lower costs makes housing more attainable for many North Dakotans.

8. Con: Limited public transportation

North Dakota may have limited public transportation options, especially in rural areas, which can hinder residents’ mobility and access to essential services. Even in major cities like Fargo, public transportation options are limited. Fargo has a transit score of 24, meaning there is a few nearby public transportation options available for residents. This lack of public transportation infrastructure can pose challenges for individuals without access to private vehicles.

9. Pro: Clean air

North Dakota has clean air quality, with minimal pollution and pristine natural surroundings contributing to a healthy living environment. The state’s expansive rural areas and low population density help maintain air quality standards, ensuring residents can breathe fresh, unpolluted air.

10. Con: Seasonal allergies

North Dakota’s changing seasons can exacerbate allergies for some residents, particularly during the spring and fall when pollen levels are high. Cities like Bismarck and Minot may experience pollen allergies triggered by trees, grasses, and weeds, including sagebrush, ragweed, and wormwood.

11. Pro: Outdoor recreation

North Dakota offers abundant opportunities for outdoor recreation, with its vast natural landscapes and diverse terrain. Residents can enjoy activities such as fishing on Lake Sakakawea, skiing in the Turtle Mountains, or exploring the trails of Sheyenne National Grassland. For example, the Maah Daah Hey Trail provides hikers, bikers, and horseback riders with scenic vistas and challenging terrain to explore amidst the state’s natural beauty.

12. Con: Economic dependence

Methodology : The population data is from the United States Census Bureau, walkable cities are from Walk Score, and rental data is from ApartmentGuide.

Source: apartmentguide.com

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Steering clear of unfriendly economic data has been an increasingly challenging task for the bond market in April.  While it might be an overstatement to say we’re going out with a bang, today’s Employment Cost Index (ECI) is at least a loud pop.  ECI–a measure of labor costs and compensation (including benefits)–is not a report that had been on the trader radar as a big ticket market mover until Powell began mentioning it regularly in the past few years. 

Today’s installment painted an unfriendly picture for inflation/rates by suggesting the progress seen through Q4 was reversing in a major way in Q1.

The bond market reaction was clear and immediate at 8:30am, even if it wasn’t as huge as we might see for a CPI or NFP that suggested hotter inflation or spending power.  

Source: mortgagenewsdaily.com

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Mortgage rates inched higher last week ahead of the Federal Reserve’s Federal Open Markets Committee on Wednesday and the national jobs report on Friday.

HousingWire’s Mortgage Rates Center showed the average 30-year fixed rate for conventional loans at 7.57% on Tuesday, slightly below the rate on Monday, which was the highest level seen this year. The 30-year rate was up from 7.48% one week earlier. At the same time one year ago, the average was 6.59%.

The 15-year fixed rate averaged 6.77% on Tuesday, up from 6.74% one week earlier.

“The economic data has been solid, GDP growth looks good in Q2, and it’s jobs week,” HousingWire lead analyst Logan Mohtashami said. “The Fed’s employment wage index still shows good wage growth. People are anticipating a more hawkish Fed at tomorrow’s meeting.”

As of April 26, there were 556,000 single-family homes on the market, up 2.4% from the previous week, according to data from Altos Research. About 13,000 additional properties were added to the market during the previous week. Unsold inventory was nearly 32% higher than at this time last year and 90% higher compared to the end of April 2022. 

“The weekly volume of new listings is now higher than at anytime last year,” Mike Simonsen, founder and president of Altos Research, wrote on Monday. “It’s still April, so there could be as many as eight more weeks of seller growth in the spring housing market. And seller growth is happening pretty much everywhere across the country, with Florida and Texas leading the way.”

There are two ways to interpret this rise in inventory, according to Simonsen. The bearish take would be to highlight the fact that there are more sellers than buyers, which could lead to a decline in home prices in the near future. On the more bullish side, more inventory could result in more sales. In addition to a higher number of new listings, there were also more new contracts started this week than in any week in 2023. 

Source: housingwire.com

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Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews.

Average 30-year mortgage rates continue to hover around 7% after spiking up earlier this month, according to Zillow data. Until we get some data showing that inflation is slowing, mortgage rates are unlikely to go down. 

After decelerating substantially in 2022 and 2023, inflation has been sticky so far this year. Because of this, investors have pushed back their expectations of a Federal Reserve rate cut. Until inflation comes down further and the Fed is able to start lowering the federal funds rate, mortgage rates will probably remain near their current levels.

Though investors were initially pricing in as many as six cuts in 2024, we may now only get one or two cuts total by the end of the year. Investors expect that the first Fed cut will come in September, according to the CME FedWatch Tool. 

This means we could see mortgage rates improve somewhat as we approach fall. But it really depends on how the latest data shakes out. If inflation stagnates, rates won’t drop. They could even tick up further.

Mortgage Rates Today

Mortgage type Average rate today
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Mortgage Refinance Rates Today

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Mortgage Calculator

Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly and long-term payments.

Mortgage Calculator

$1,161
Your estimated monthly payment

Total paid$418,177
Principal paid$275,520
Interest paid$42,657
  • Paying a 25% higher down payment would save you $8,916.08 on interest charges
  • Lowering the interest rate by 1% would save you $51,562.03
  • Paying an additional $500 each month would reduce the loan length by 146 months

By plugging in different term lengths and interest rates, you’ll see how your monthly payment could change.

Mortgage Rate Projection for 2024

Mortgage rates increased dramatically for most of 2023, though they started trending back down in the final months of the year. As the economy continues to normalize this year, rates should come down even further.

In the last 12 months, the Consumer Price Index rose by 3.5%, a significant slowdown compared to when it peaked at 9.1% in 2022. As inflation slows and the Federal Reserve is able to start cutting the federal funds rate, mortgage rates are expected to trend down as well. But because inflation has been somewhat sticky in recent months, mortgage rates have remained elevated so far this year.

For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of the best HELOC lenders to start your search for the right loan for you.

A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.

Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans. 

When Will House Prices Come Down?

We aren’t likely to see home prices drop anytime soon thanks to extremely limited supply. In fact, they’ll likely rise this year as mortgage rates drop.

Fannie Mae researchers expect prices to increase 4.8% in 2024, while the Mortgage Bankers Association expects a 4.1% increase in 2024.

Lower mortgage rates will bring more buyers onto the market, putting upward pressure on prices. But prices aren’t currently expected to increase as much as they have in recent years. 

Fixed-Rate vs. Adjustable-Rate Mortgage Pros and Cons

Fixed-rate mortgages lock in your rate for the entire life of your loan. Adjustable-rate mortgages lock in your rate for the first few years, then your rate goes up or down periodically.

So how do you choose between a fixed-rate vs. adjustable-rate mortgage?

ARMs typically start with lower rates than fixed-rate mortgages, but ARM rates can go up once your initial introductory period is over. If you plan on moving or refinancing before the rate adjusts, an ARM could be a good deal. But keep in mind that a change in circumstances could prevent you from doing these things, so it’s a good idea to think about whether your budget could handle a higher monthly payment.

Fixed-rate mortgage are a good choice for borrowers who want stability, since your monthly principal and interest payments won’t change throughout the life of the loan (though your mortgage payment could increase if your taxes or insurance go up).

But in exchange for this stability, you’ll take on a higher rate. This might seem like a bad deal right now, but if rates increase further down the road, you might be glad to have a rate locked in. And if rates trend down, you may be able to refinance to snag a lower rate 

How Does an Adjustable-Rate Mortgage Work?

Adjustable-rate mortgages start with an introductory period where your rate will remain fixed for a certain period of time. Once that period is up, it will begin to adjust periodically — typically once per year or once every six months.

How much your rate will change depends on the index that the ARM uses and the margin set by the lender. Lenders choose the index that their ARMs use, and this rate can trend up or down depending on current market conditions.

The margin is the amount of interest a lender charges on top of the index. You should shop around with multiple lenders to see which one offers the lowest margin.

ARMs also come with limits on how much they can change and how high they can go. For example, an ARM might be limited to a 2% increase or decrease every time it adjusts, with a maximum rate of 8%.

Molly Grace

Mortgage Reporter

Source: businessinsider.com

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Approximately 15 million Americans continue to grapple with medical debt on their credit reports, despite reforms implemented by Equifax, Experian and TransUnion in March 2022, the Consumer Financial Protection Bureau (CFPB) revealed in a study published Monday.

As of June 2023, about 5% of Americans had unpaid medical bills on their credit reports,  down from 14% in March 2022. Older Americans saw the largest improvement, as only 3% of them had medical bills on their credit reports in June 2023, compared to 8.4% in March 2022. 

But the effectiveness of the changes made by the three major credit reporting agencies appears weaker for lower-income communities and individuals residing in Southern states. On average, people living in the South continue to have the most medical bills in collections and have the largest dollar amounts outstanding.

Collectively, Americans have more than $49 billion in medical debt in collections. This amount has declined, however, after a previous CFPB study found an estimated $88 billion in medical bills on consumer credit reports.

Medical debts have had significant long-term financial consequences on consumers as paid debts that are sent to collections remain as red marks on their reports. This often limits their options for housing, loans and credit cards.

Traditionally, health care debt held less weight than other types of debt and typically didn’t impact credit scores. In most cases, medical providers refrained from reporting payment activity, or lack thereof, to the credit bureaus. In general, unpaid medical bills went into collections anywhere between 60 to 180 days after becoming delinquent, depending on the provider.

Since March 2022, however, the three nationwide credit reporting companies have made significant changes. They removed all unpaid medical debt with an initial balance below $500 from credit reports. The time before medical bills in collections can appear on credit reports was extended from 180 days to one year. And the companies ceased reporting medical bills that have been resolved after going into collections. 

The average medical balance on credit reports increased from March 2022 to June 2023, going from $2,000 to more than $3,100 as the credit reporting changes primarily targeted smaller balances. While many bills were removed, a significant portion of medical collections balances still linger on credit reports.

Source: housingwire.com

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Corpus Christi is a coastal city in Texas that serves as a gateway to adventure or peace. Known colloquially as the “Sparkling City by the Sea,” this charming city invites everyone lucky enough to lock down a home in Corpus Christi to immerse themselves in its distinct culture. 

The city’s proximity to the Gulf of Mexico enhances its appeal, providing scenic views and unlimited recreational activities. Corpus Christi is not just a destination; it’s a starting point for explorers eager to find an apartment and discover the charm of South Texas. 

Whether you’re a history buff, nature lover, or simply in search of relaxation by the sea, Corpus Christi has something special for you. Let’s dive a little deeper to learn more about ten of the top things Corpus Christi is known for. 

1. USS Lexington

Moored in Corpus Christi Bay, the USS Lexington is an awe-inspiring sight, serving as a naval museum and a tribute to military history. This World War II-era aircraft carrier, affectionately known as “The Blue Ghost,” offers visitors a glimpse into life at sea during wartime. Touring this historic vessel allows for exploration of the flight deck, aircraft, and crew quarters, providing an immersive experience that connects generations to the sacrifices of the past.

2. Padre Island

Padre Island, specifically the Padre Island National Seashore, stretches over 70 miles and is one of the longest undeveloped barrier islands in the world. This natural sanctuary offers miles of beautiful beaches where visitors can enjoy activities such as bird watching, fishing, and sea turtle spotting. 

3. South Texas Botanical Gardens

The South Texas Botanical Gardens are a colorful and fragrant oasis with extensive collections of orchids, plumerias, and native flora. This expansive garden serves as a peaceful retreat and an educational resource, emphasizing the importance of conservation and the diversity of plant life in the region. Visitors can stroll through themed gardens, enjoy bird watching, or participate in one of the many workshops and events held throughout the year.

4. Mirador de la Flor

Dedicated to the late Tejano singer Selena Quintanilla, Mirador de la Flor is a poignant landmark in Corpus Christi. This memorial features a life-size bronze statue of Selena and a mural depicting her life and career. The site is a touching tribute to the singer and her impact on the music industry and Latino community.

5. Texas State Aquarium

The Texas State Aquarium is a major attraction in Corpus Christi. Visitors can explore exhibits that include dolphin presentations, touch pools, and an impressive shark exhibit. This institution provides insights into aquatic creatures and plays a vital role in wildlife conservation and rehabilitation efforts.

6. Aransas National Wildlife Refuge

Aransas National Wildlife Refuge is a crucial habitat for a variety of at-risk wildlife, including the rare whooping crane, which winters here. Spanning over 115,000 acres, this refuge offers opportunities for bird watching, hiking, and photography. The diverse ecosystems found within the refuge, from coastal prairies to salt marshes, provide crucial support for numerous species and make it a vital part of wildlife conservation in Texas.

7. Corpus Christi Museum of Science and History

The Corpus Christi Museum of Science and History offers a deep dive into the regional history and natural science of the Gulf Coast. Exhibits range from paleontology to local cultural heritage, including a replica of Columbus’ ship, the Pinta. This museum is a treasure trove for curious minds of all ages.

8. Whataburger Field

Home to the Corpus Christi Hooks, the Double-A affiliate of the Houston Astros, Whataburger Field incorporates local history with modern baseball culture. The stadium is located in the heart of Corpus Christi and offers a fantastic view of the as well as a glimpse of the Harbor Bridge and Corpus Christi Ship Channel. Attending a game here is about more than baseball; it’s about enjoying community in a small-town ballpark.

9. Harbor Bridge

Harbor Bridge is an iconic structure in Corpus Christi, connecting the city to North Beach. Known for its impressive architecture and LED lights, the bridge has stunning views of the city skyline and Corpus Christi Bay. Whether driving over it or viewing it from a distance, the Harbor Bridge remains a symbol of the city’s connection and resilience.

10. Selena Museum

Established by the Quintanilla family, the Selena Museum celebrates the life and career of Selena Quintanilla. Located within Q-Productions headquarters, the museum displays a collection of her stage costumes, awards, and personal items.

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The term “six figures” refers to any annual six-digit salary that falls within the $100,000 to $999,999 range. Securing a post-graduate degree or attaining a highly in-demand position can help you earn six figures over time.

How Much Money Is Six Figures?

A six-figure salary can range anywhere from $100,000 to $999,999 annually. If a person had an annual income of $500,000, here’s what their payments would look like before taxes and deductions:

Salary Breakdown

$500,000 per year

$240

per hour

$9,615

per week

$19,231

every 2 weeks

$41,667

per month

$125,001

per quarter

$250,002

every six months

Please note that this breakdown doesn’t include taxes, which can vary depending on your state and filing status. This breakdown will also vary depending on a person’s exact salary and not what they’re expected to receive.

What Percent of America Makes Six Figures?

When you remove demographics such as infants, students, and stay-at-home spouses and focus only on full-time workers, around 18% of all earners in the US make at least six figures.

Conversely, the median American household income in 2023 was approximately $44,225. This number will fluctuate when one examines factors like the location, education, and health of certain populations. 

How Does Education Affect Earning Six Figures?

Having a higher education can create more opportunities to earn a six-figure salary after college. Postgraduate degrees in Science, Technology, Engineering, and Mathematics (STEM) fields are often requirements for high-paying occupations. 

Below are their median salaries, according to the Bureau of Labor Statistics. Keep in mind that median salaries don’t reflect the highest or the lowest paying positions:

Higher education is synonymous with increased student debt, but at least five college degrees are worth the money in the long run. Medical degrees, engineering programs, industrial management studies, and computer science degrees fall under this umbrella.

Can You Make Six Figures Without a Degree?

It’s possible to earn $100,000 or more each year without a college degree by pursuing certain occupations. Roles in this category often require preliminary and on-the-job training, as well as multiple certifications.

Choosing this route can also help you avoid some of the most frequent student loan mistakes, such as borrowing more money than you need and slowing down your financial growth.

Commercial Airline Pilot

The median salary for airline and commercial pilots was $148,900 in 2023. Securing a pilot’s license is the first barrier to entry for this role, though it will take years to gain the necessary experience for the most lucrative positions.

Air Traffic Controllers

The high level of responsibility and focus required of air traffic controllers results in a high compensation of about $132,250 annually. An individual’s performance and personal experience can pave the way for higher wages over time.

Air traffic controllers only need an associate degree to get started, though this role requires extensive on-the-job training.

Police Officer or Firefighter

Police officers and detectives, along with firefighters, can earn larger salaries based on their experience and location. For instance, the salary and benefits for police officers in California total around $117,822 annually and include health and dental insurance.

Hard Labor Jobs

Hard labor jobs often pay very well to compensate for the physical risks and immense technical knowledge that these roles demand. In 2022, power plant operators earned a median salary of $97,570. As technology and energy continue to become more important to society, the demand and compensation for these roles will almost certainly rise.

Athletes and Sports Competitors

World-famous athletes and sports competitors like LeBron James, Lionel Messi, and Naomi Osaka earn millions of dollars each year, but many of their contemporaries also earn fantastic salaries without ever needing a degree. Talented athletes with the proper opportunities earned a median salary of $94,270 in 2022.

Real Estate Agent

Real estate brokers and sales agents can earn six-figure salaries without a college degree. Instead, they will need to invest time and money into securing a real estate salesperson license—which, in California, for example, can cost upwards of $500 once all fees are accounted for.

Real estate agents largely earn income from commissions, so they’ll have to gain experience and build up their network of clients to hit that six-figure mark.

Making Six Figures From Your Investment Strategy

A certified financial advisor is best qualified to help you understand how your investments can grow in the future. A strong investment strategy combined with the proper resources and economic conditions can also help someone earn six figures annually.

Potential investment options include:

  • Pretax retirement savings plans
  • Stocks, bonds, treasuries, and cryptocurrencies
  • Real estate and REITs (real estate investment trusts)

Compound interest helps funds grow exponentially based on the amount you’ve deposited and any additional contributions you add. To see this concept in action, you can use our 401(k) calculator and try out multiple scenarios.

Normally, compound interest accounts can generate 5% to 8% interest each year based on your retirement investments. Jobs that provide employees with 401(k) matching contributions can generate hundreds of thousands of dollars by the time you reach retirement age (around 65 years old).

What Are the Best Ways to Start Earning Six Figures?

Keep these strategies in mind if you strive to make at least $100,000 annually:

  • Consider earning a postgraduate degree. Postgraduate STEM degrees may pave the way for higher-paying roles after graduation.
  • Avoid student loans to the best of your ability.
  • Research vocations that don’t require post-graduate degrees. 
  • Consider attending a trade school or a technical college.

How to Increase Your Income in Your Current Role

You have several options to increase your revenue in your current career.

  • Consider switching companies every few years. Competitors may pay more for experienced workers from other companies.
  • Pursue promotions within your current organization whenever possible.

Explore entrepreneurship once you’ve gained enough practical experience and saved up a set amount of capital. 

2024 Tax Brackets for Single and Joint Filers

As your salary increases, so will your tax obligations for each year. The Internal Revenue Service disclosed the following income tax bracket structure for 2024:

Percentages

Single Filers

Joint Filers

35%

$243,725

 $487,450

32%

$191,950

 $383,900

24%

$100,525

 $201,050

22%

$47,150

 $94,300

12%

$11,600

 $23,200

Maintain Strong Credit With Credit.com

No matter how you plan to increase your revenue, maintaining strong credit is pivotal. Good or even excellent credit can help you secure lucrative loans and could even open the door to higher-paying positions. With Credit.com’s ExtraCredit® subscription, you can get reliable updates about your credit score and insight into your credit information with resources, tools and strategies to help you know where to work and progress for credit security.

Source: credit.com

Apache is functioning normally

Representative French Hill, a Republican from Arkansas, sits on the House Financial Services Committee.

Al Drago/Bloomberg

WASHINGTON — Rep. French Hill, R-Ark., the vice chairman of the House Financial Services Committee, criticized a range of proposals by Biden administration regulators, notably those related to technology, including bank-fintech partnerships and digital assets, in a speech Tuesday.

Hill, who also serves as the chairman of the House Financial Services subcommittee on digital assets and is in the running to take the top Republican spot on the full committee next Congress, told a room full of community bankers that his and other House Republicans’ focus for the remainder of the Biden administration is pushing back on regulators’ policies, as well as introducing some legislation to “lead us in the right direction.” He spoke at a conference organized by the Independent Community Bankers of America.

In particular, Hill criticized a move by the Federal Reserve in August that outlined how the central bank would oversee “novel activities,” including technology-driven partnerships with nonbanks, and activities that include cryptocurrencies and blockchain technology.

Hill and many other Republicans interpret steps being taken by banking regulators to address fintech and crypto policy as effectively shutting out banks from those businesses. 

Hill argued that the Fed’s action in August “basically says that if you want to partner with a fintech company in any aspect of your business, somebody has to get preapproval for that.’

“I told Vice Chairman [Michael] Barr, that’s not the way we work in banking,” he added.

Hill said that regulators should instead look at these partnerships and activities at banks individually through the examination process. 

“We have records, we have risk management policies and compliance departments,” he said. “We document all that, then we’ll go over it with an exam. I thought that was a serious overreach.” 

Hill said that one of his goals in the next year is to show regulators and Congress that fintech “can benefit banks.” He’s also interested in the use of artificial intelligence in the financial sector.

“We’re bringing in the regulators, asking them how they’re using AI in their own practice and their own services to you, and how they’re looking at AI from a supervisory perspective,” he said. 

Hill also referenced an off-the-record session at the ICBA conference the previous day with Consumer Financial Protection Bureau Director Rohit Chopra. Hill, like other congressional Republicans, has repeatedly criticized Chopra’s rulemakings and enforcement actions.

“I don’t think any CFPB director has ever made a small business loan,” Hill said. “You got to hear from one of the slickest guys in town yesterday.”  

Hill promised to continue pushing back on the CFPB’s small-business lending data collection rule, which has faced litigation from the banking industry as well as an ultimately unsuccessful Congressional Review Act challenge. 

Source: nationalmortgagenews.com

Apache is functioning normally

Inside: Uncover the realities of financial aid repayment for students. Learn about FAFSA, loan forgiveness, credit impacts, and strategies for managing your student debt. Find out which types of debt you must pay back.

Financial aid is a beacon of hope for many aspiring students, granting them the financial support they need to access higher education.

Yet, understanding the basics of FAFSA makes applying for financial aid confusing for most students. When considering aid options, it’s crucial to differentiate between the various available types.

Navigating your repayment obligations can seem daunting, but with proactive management, they needn’t be overwhelming.

Take stock of your financial aid package and parse out which portions require repayment.

Understanding these details is the first step towards fulfilling your obligations without compromising your financial well-being.

Remember to read the fine print and don’t hesitate to reach out to your loan servicer for clarification. They are there to help guide you through the repayment process.

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

Do you have to pay back FAFSA money?

Technically, FAFSA indicates how much financial aid you can qualify for. Whether you need to repay depends on the type of financial aid you received:

  • Grants and scholarships: These forms of aid do not require repayment.
  • Work-Study: These funds are earned through part-time work and do not require repayment.
  • Loans (subsidized, unsubsidized, and Direct Plus Loans): These must be repaid with interest.

It’s important to note that while grants typically don’t have to be paid back, certain circumstances, such as withdrawal from a program or changes in enrollment status, may require you to repay federal grant money.

Start filling out your FASFA properly with these tips.

Do you have to pay scholarships back?

When it comes to scholarships, the name of the game is financial support without the strings of repayment. Generally, scholarships are like gifts—they do not have to be paid back. Perfect for the undergraduate!

Scholarships are awarded for various reasons such as academic excellence, artistic or athletic talent, or involvement in community service, among others. That said, it’s imperative to understand the terms set by the scholarship provider.

Most scholarships are commitment-free, but some may carry conditions such as maintaining a certain GPA, completing a degree in a specified field, or requiring the recipient to follow through with certain obligations. If these conditions are not met, there could be repercussions, including the requirement to repay the funds.

Learn how to pay for college without loans.

Types of Financial Aid That Require Repayment

I’m not going to lie when I was looking at borrowing for financial aid for college I was confused with the names and types of aid offered. Now, I know the best course of action is to get paid to go to school.

Thankfully, there is more information readily available for this type of information rather than relying on your guidance counselor.

So, here is the info you need.

Unraveling Federal Student Loan Repayment

First, you must understand the different types of Federal Student loans to know their repayment requirements.

Each loan type has its own set of rules and repayment schedule, typically beginning after you graduate, leave school, or drop below half-time enrollment.

Federal loans boast flexible repayment options.1

  • The Standard Repayment Plan for federal loans entails a fixed monthly payment amount, ensuring that the loans are fully repaid within a standard period of 10 years, and extends to 30 years for direct consolidation loans. This plan is often the quickest way to pay off loans, providing a consistent monthly payment over the repayment term.
  • The Graduated Repayment Plan starts with lower monthly payments that increase every two years, designed to pay off all student loans within 10 years, or 30 years if it’s a direct consolidation loan.
  • The Extended Repayment Plan offers borrowers with over $30,000 in federal student loans the flexibility of fixed or graduated payments over a 25-year period.
  • If affordability is a concern, you might settle on an income-driven repayment (IDR) plan, which keys your monthly payments to your earnings and family size. Should your finances take a downward turn, relief is available through programs like deferment or forbearance, allowing you to temporarily suspend payments.

After 20 to 25 years on an IDR plan, you might even be eligible for loan forgiveness for any remaining balance. This doesn’t nullify your entire debt but can relieve a significant financial burden. Teacher Loan Forgiveness and Public Service Loan Forgiveness (PSLF) are two such avenues, provided eligibility requirements are met.

Deciphering Private Student Loan Responsibility

These private loans are offered by non-government entities such as banks, credit unions, and online lenders, and repayment rules can be more stringent. As such, it is best to start with traditional federal loans.

While you typically aren’t required to repay private student loans while you’re in school, interest accrues during this time, increasing your eventual debt. After leaving school, some lenders allow a grace period similar to federal loans, but this isn’t guaranteed. Check with your lender for specifics on repayment commencement and grace periods.

Repayment plans with private loans are usually less flexible and often lack income-driven options. Monthly payments are fixed, and lender offerings on deferment and forbearance can be less generous, with some providing no options for such measures.

This is why it is best to learn how to pay for college without parents’ help.

Scholarship System

The Scholarship System is changing how parents and students look at paying for college. 

Learn how real people found real scholarships. Their students have been awarded $12,060,000 in scholarship money (as of October 2023).

Join the Free Training

Our Review

When You Need to Start Paying Back Financial Aid

Federal Loans: Grace Periods and Repayment Plans

Federal student loans, notably, offer a six-month grace period following graduation, leaving school, or dropping below half-time enrollment status. During this period, no payments are due, offering you time to get financially settled and choose a repayment plan.

Repayment plans span the Standard, where you’ll pay a fixed amount each month for a term of usually ten years, to Graduated, where payments start lower and increase over time. Income-Driven Repayment Plans adapt to your income level, ensuring that your student loan payments are manageable relative to your earnings.

Each plan has unique advantages depending on your financial situation and long-term goals. The key is to select one that corresponds with your ability to pay, aligns with your career trajectory, and manages your debt effectively over time.

Always be proactive in contacting your loan servicer to discuss plan options or changes in your financial status.

Private Loans: Lender-Specific Timelines and Terms

Private loans come with lender-specific timelines and terms that can vary widely from one lender to another. Unlike federal loans, private loans don’t come with a standardized grace period, although some lenders may offer a similar post-graduation moratorium on payments.

Borrowers must check their loan agreements to determine when repayment should begin.

The terms of repayment for private loans are also set by the lender and typically don’t offer the same flexibility found in federal programs. Fixed and variable interest rates are based on credit scores, and while some lenders might offer loan modification options in cases of financial hardship, such policies are not universal.

Remember, with private loans, leniency for late or missed payments is not a given.

Consequences of Defaulting on Financial Aid

The Effects on Credit Scores and Future Borrowing

Missing payments, or worse, defaulting on your student loans, are red flags to future creditors that appear on credit reports and can significantly lower your credit score. A lower score can make securing further credit from lenders—whether it’s for a mortgage, a car loan, or a credit card—an uphill battle.

Moreover, the repercussions ripple outward: Not only might you face higher interest rates due to perceived risk, but landlords and employers can reference credit scores during their tenant or employment screening processes.

Maintaining on-time payments is an investment not only in your education but also in your broader financial stability and opportunities.

Legal Repercussions and Wage Garnishment Risks

Wading into the murky waters of default on student loans can unleash legal repercussions that ripple through your financial landscape. The government has tough mechanisms to recoup defaulted federal student loans, ranging from wage garnishment — where a portion of your paycheck is allocated to your debt without your consent — to seizing tax refunds and other federal benefits you may be entitled to receive.

The prospect of wage garnishment adds a level of complication to an already tense situation. In such cases, the government can legally claim up to 15% of your disposable income. This can strain your finances even more, potentially forcing you to make hard choices about your monthly budget.

These same consequences do not typically apply to private student loans, which are subject to state laws. However, private lenders can bring lawsuits against borrowers in default, leading to potential wage garnishment or asset liquidation as decided by a court.

The message is stern yet simple: Stay vigilant with student loan repayments to forestall these severe outcomes.

Options for Managing Repayment Challenges

Loan Forgiveness, Cancellation, and Discharge Opportunities

Navigating the sea of student loan debt isn’t without its lifelines. Loan forgiveness, cancellation, and discharge programs can serve as financial floatation devices, providing necessary relief in an ocean of repayment.

  • Loan forgiveness is typically occupation-specific. For instance, Public Service Loan Forgiveness (PSLF) absolves remaining federal loan debt after 120 qualifying payments for professionals in government or non-profit sectors.
  • Cancellation might occur under circumstances like your school closing prematurely or if you’ve been defrauded by the institution.2
  • Additionally, if you become totally and permanently disabled, you may qualify for a discharge, relieving you from the obligation to repay your federal student loans.

Exploring these opportunities requires patience and diligence, as each comes with strict eligibility criteria. Nonetheless, they can significantly lighten the burden of student debt.

Strategies for Keeping Student Loan Payments Affordable

Crafting a strategy to keep student loan payments within the realm of affordability hinges on exploring all available options and making informed choices. Consider the following ways to ensure your loans remain manageable:

  1. Income-Driven Repayment Plans: Federal loans offer several plans that base your monthly payment on your income, notably capping payments at a fixed percentage of your discretionary income. These plans can significantly decrease your monthly obligations if you’re starting with a lower salary.
  2. Refinancing or Consolidation: You might find a lower interest rate through refinancing, which can reduce your monthly payments and the total cost over the life of the loan. Consolidating multiple federal loans can streamline payment processes, though it may average out to a higher overall interest rate. This is what I did.
  3. Applying for Deferment or Forbearance: In times of financial hardship, job loss, or returning to school, you can apply for a temporary suspension of payments. While interest may still accrue, it can provide short-term relief.
  4. Making Extra Payments: By paying more than the minimum or making bi-weekly payments, you can reduce the principal balance faster and save on interest in the long run.
  5. Setting a Budget and Cutting Expenses: Sometimes, the most effective strategy is tightening your budget. By trimming unnecessary expenses, you may free up funds for your loan payments.

Every borrower’s situation is unique, so consider your financial circumstances and long-term goals when choosing the best strategy for you. Always maintain open communication with your loan servicer to stay abreast of changes or additional assistance programs that may become available.

Should I refinance my Student Loans?

Refinancing your student loans can be a strategic move to manage debt, potentially offering lower interest rates and different repayment terms to suit your financial situation. It involves replacing your current loan with a new one, typically through a private lender, and may provide relief if you’re struggling with high payments.

However, borrowers should carefully consider the loss of federal loan benefits, like loan forgiveness, before proceeding with refinancing their student loans.

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We refinanced our student loans to lower the payments and ultimately are debt free.

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Making Informed Financial Aid Decisions – How to Review and Understand Your Aid Offer

When the much-anticipated financial aid offer lands in your hands, taking the time to thoroughly review and understand it ensures you’re making an informed decision. Here’s how you can break down your aid package:

  1. Identify Free Money: Distinguish between grants and scholarships that don’t require repayment from loans that do. These are the parts of your offer that you’ll want to maximize.
  2. Assess Work-Study Opportunities: If your offer includes federal work-study, understand that these funds must be earned and are not guaranteed. They depend on your finding an eligible job and fulfilling work hours.
  3. Analyze Loan Details: Look closely at the type of loans offered, their interest rates, and repayment terms. Remember, federal loans generally offer more favorable terms than private loans.
  4. Calculate Net Cost: Subtract the total aid package, excluding work-study, from the overall cost of attendance to determine what you’ll need to cover through savings, income, or additional loans.
  5. Consider Cost of Living: Ensure that you take into account living expenses and indirect costs like books and supplies when reviewing your aid offer.

If anything is unclear, don’t hesitate to contact the school’s financial aid office for clarification. The goal is to fully understand your commitments before accepting any part of the aid offer.

Remember Not All Financial Aid Offers Must Be Accepted

Not every portion of the financial aid offered to a student needs to be accepted.

It’s crucial to carefully evaluate the components of the financial aid package, as some elements, such as loans, will need to be repaid with interest. Ultimately, it’s important to make informed decisions about which types of aid to accept based on one’s financial circumstances and long-term educational costs.

Frequently Asked Questions (FAQ)

FAFSA, the Free Application for Federal Student Aid, is a form that determines your eligibility for different types of financial aid, not money in itself.

Some aid offered via FAFSA does not need to be repaid, like grants and scholarships, while other types, such as federal student loans, do require repayment with interest.

If you withdraw from college, your student loans remain in place and need repayment.

Following withdrawal, usually a six-month grace period for federal loans before repayments start. However, interest may accrue during this time, except for subsidized federal loans, which don’t accumulate interest until after the grace period.

Yes, FAFSA loan debt, which generally refers to federal student loans obtained through the FAFSA application process, can be forgiven, canceled, or discharged under certain conditions, such as public service work, teaching in low-income areas, or permanent disability.

However, these options have specific eligibility requirements. So, be careful and read the fine print.

If you don’t pay back financial aid that is in the form of a loan, you risk defaulting, which can lead to wage garnishment, withheld tax refunds, lowered credit score, and other financial consequences.

It can make future borrowing more difficult and become a legal issue. Always seek help before defaulting.

What Happens If You Don’t Pay Back the Financial Aid?

If you don’t pay back financial aid that is in the form of a loan, you risk defaulting, which can lead to wage garnishment, withheld tax refunds, lowered credit score, and other financial consequences.

It can make future borrowing more difficult and become a legal issue. Always seek help before defaulting.

Source

  1. Federal Student Aid. “Federal Student Loan Repayment Plans.” https://studentaid.gov/manage-loans/repayment/plans. April 28, 2024.
  2. Student Loan Borrower Assistance. “Borrower Defense to Repayment.” https://studentloanborrowerassistance.org/for-borrowers/dealing-with-student-loan-debt/loan-cancellation-forgiveness-bankruptcy/cancellation-forgiveness-options/borrower-defense-to-repayment/. April 28, 2024.

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Source: moneybliss.org