Month: September 2024

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Mortgage rates fell this week after the chair of the Federal Reserve uttered long-awaited, market-moving words.

“The time has come for policy to adjust,” Fed Chair Jerome Powell said Aug. 23 in a speech. Translated from Fedspeak to English, this means, “We’re going to cut interest rates soon.”

Investors already were betting that the Federal Reserve would reduce the federal funds rate at the central bank’s next meeting, Sept. 17-18. But when Powell said it out loud, he provided confirmation that markets sought. The average rate for the 30-year fixed-rate mortgage reacted by dropping 11 basis points to 6.27% in the week ending Aug. 29. A basis point is one one-hundredth of a percentage point.

Powell explained that the inflation rate seems like it’s headed toward the Fed’s goal of 2%. Meanwhile, job growth has slowed and the unemployment rate has gone up. These developments are a result of restrictively high interest rates set by the Fed.

“We do not seek or welcome further cooling in labor market conditions,” Powell said. And cutting interest rates is a way to prevent labor markets from cooling more.

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Rates have been trending downward

Orphe Divounguy, senior economist for Zillow Home Loans, called Powell’s pronouncement “a gift to investors and home shoppers alike.” It’s a gift that’s been sitting under the tree for weeks: Mortgage rates have fallen more than a percentage point since early May.

The 30-year mortgage rate averaged 7.32% in the week ending May 2 and has tumbled since then, remaining under 6.5% for the last four weeks. The decline in rates has made homes more affordable than they were just four months ago.

“Lower rates also make it easier for existing homeowners to sell,” points out Lisa Sturtevant, chief economist for Bright MLS, a multiple listing service in the mid-Atlantic region.

In a news release, Sturtevant said the typical homeowner has a mortgage rate that’s three percentage points lower than current mortgage rates. “This rate gap has kept some homeowners from listing their home for sale. As rates fall, the rate gap is going to be less of an obstacle to sellers.”

Lower rates offer a refinancing opportunity

Today’s lower rates are a boon to people who bought last fall, when mortgage rates topped 7.5%. Some of these homeowners could reduce their monthly payments substantially by refinancing.

Take the example of a borrower who got a $350,000 mortgage last October at 7.5%. By refinancing the same amount at a 6.25% rate, they could cut their monthly payment by $292. They could wait for rates to drop even lower, but each month of waiting marks $292 of savings foregone.

Source: nerdwallet.com

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When you’re thinking about earning more money in the quickest way possible, you might consider targeting a certificate program. Certificate programs have a major added benefit in that once you have your credentials in hand, they can help you boost your financial situation, sometimes significantly.

Graduates of all levels can take advantage of certificate programs, whether you’re a high school graduate or whether you have completed graduate school. (You may have come across information about paying for graduate certificates in your graduate school program.)

Keep reading to learn the definition of certificate programs, whether you’re eligible for student loans with a certificate program, funding options for certificate programs, the pros and cons of taking out a student loan for certificate programs, and more.

What Are Certificate Programs?

Certificate programs can help you specialize in a specific trade or update your professional skills. These programs teach practical skills and training related to a specific career field — you don’t take general courses toward a degree.

Why might you want to tap into a certificate program? In addition to increasing your salary potential, you may want to get updated career training or learn about technological advancements or updates in your field.

Students who have a high school diploma or general educational development (GED) can use undergraduate certificate programs to go straight into the workforce with an entry-level position within a specific field.

Students who have already earned bachelor’s or graduate degrees may be interested in enrolling in certificate programs related to their field and level. Certificates could also give those who have already earned a bachelor’s degree an option to advance their career while avoiding graduate school altogether. (However, it’s important to distinguish the difference between a certification and a certificate. A certification usually means a stepping-stone credential that you must have for certain career paths. This article primarily discusses certificate programs, but some careers may require a certificate, even after getting a bachelor’s or graduate degree.)

Recommended: Is a Post-Grad Certificate Program Worth It?

Cost of Certificate Programs

The earning potential relative to the low cost of a certificate program can pay off. For example, consider that in the 2023-2024 academic year, students at private nonprofit four-year institutions paid $41,540 on average for tuition and fees.

Students can spend far less on a certificate program — around $5,000 per program (or more or less, depending on the type of program you choose to complete). The variations in cost depend on the college, program, and credit requirements. For example, an online program at a community college will most likely cost less than through an in-person state or private college certificate program.

Let’s take a look at a few types of certificate programs and potential earnings:

•   Surgical technologists: Earn a median income of $60,370 per year as of 2023 and will see 5% job growth through 2032, according to the Bureau of Labor Statistics (BLS).

•   Construction and building inspectors: Earn a median income of $67,700 per year as of 2023, according to the BLS, though it is anticipated the industry will see a 2% decline through 2032.

•   Plumbers, pipefitters, and steamfitters: Earn a median income of $61,550 per year as of 2023, according to the BLS. This job is expected to experience a 2% increase in growth through 2032.

•   Court reporters: Earn a $63,940 median income per year as of 2023, according to the BLS. The industry will see a 3% increase in job growth through 2032.

•   Sheet metal workers: Earn a $58,780 median income per year as of 2023, according to the BLS. The industry is expected to see no increase in job growth through the year 2032.

Are Certificate Programs Eligible for Student Loans?

Yes, you can get a student loan to help you pay for a qualifying certificate program. As long as you attend an eligible school, you may qualify for a federal or private student loan to pay for a certificate program.

However, certain certificate programs may not qualify for federal student aid, depending on the nature of the certificate program. For example, if you need to take a class to boost your credentials as a criminalist in the DNA section of your state’s crime lab, you may not be able to borrow student loans to cover that class. In some cases, your employer may cover the fees for your course.

We’ll dive into the exact funding options for certificate programs below.

Funding Options for Certificate Programs

Before embarking on a certificate program, you need to figure out how you’re going to pay for it. Talk to the financial aid office at the college, university, or career school you plan to attend. Options for paying for certificate programs include:

Private Student Loans

Can you get student loans for certificate programs, or more specifically, private student loans for certificate programs? Answer: Yes!

A private student loan refers to money you borrow for educational expenses and pay back over time, with interest. You can get a private student loan to cover the cost of a certificate program. Private student loans can come from a bank, credit union, or another financial institution.

Interest rates are usually slightly higher for private student loans compared to federal student loans. Federal loans also come with borrower protections and forgiveness options. In general, it’s best to exhaust your federal student loan options prior to tapping into private student loans, if you’re eligible. The amount you can borrow depends on the cost of your degree and personal financial factors like your credit score and income.

Check out the private student loan guide for more information about student loans.

Federal Grants

You may qualify for federal grants to cover the costs of a certificate program. Federal grants are typically free money, assuming you meet the obligations. 

In order to qualify for a federal grant, you must file the Free Application for Federal Student Aid (FAFSA®). The FAFSA will also verify whether your certificate program qualifies for federal student aid under the U.S. Department of Education.

You may qualify for a Pell Grant , the largest program under the Department of Education. Pell Grants are awarded to students with financial need and no prior degree. You may also be able to tap into Federal Supplemental Educational Opportunity Grants (FSEOG).

Recommended: FAFSA Grants & Other Types of Financial Aid

Federal Student Loans

Just like federal grants, you must file the FAFSA in order to qualify for federal student loans. The difference between federal grants and federal student loans is that you must repay the money you borrow for loans. You must also meet some basic eligibility criteria to qualify for federal student loans.

Undergraduate certificate students who show evidence of financial need may qualify for a Direct Subsidized Loan. Undergraduate, graduate, and professional students can qualify for a Direct Unsubsidized Loan, but eligibility is non-need-based. It’s important to discuss both of these options as well as Direct PLUS Loans for graduate or professional students with financial aid offices to determine whether you can get any one of these loans to cover the costs of your certificate program.

You must go through entrance counseling to make sure you understand your loan repayment obligations to get a federal graduate student loan or undergraduate loan, as well as sign a Master Promissory Note. The Master Promissory Note states that you agree to the terms of the loan.

Recommended: Types of Federal Student Loans

Personal Loans

It may also be possible to borrow money from a bank, credit union, or online lender in the form of a personal loan. You’ll pay back a personal loan in fixed monthly payments or installments, usually over the course of two to seven years.

Just like a student loan, a personal loan is an unsecured debt. This means that it isn’t backed by collateral. If you stop making payments, none of your assets will be seized by the lender.

Interest rates may be higher for personal loans compared to private student loans and federal student loans, however. Do your homework before selecting one option over the other.

Employer Funds

If you’re currently employed and a certification relates to your current job description, your employer may pay for a portion or all of the cost of your certificate program. Companies like Starbucks, Google, and Target all have tuition assistance programs. Many companies will offer tuition assistance for college courses and some may even cover professional certifications.

Explore your options with your human resources office or ask your supervisor for more information.

Recommended: How to Pay for a Grad Certificate Program

Pros and Cons of Taking Out Loans for Certificate Programs

What are the pros and cons of taking out loans for certificate programs? Let’s walk through a few.

Pros of Taking Out Loans for Certificate Programs

•   Offers career change opportunities: You may want to branch out or change your career completely, and getting a loan for a certificate program may allow you to do so.

•   Costs less than a traditional degree: A certification usually costs less than pursuing a four-year or even a two-year degree. You may quickly pay off a loan, particularly because it may take you only a few months to attain a certificate.

Cons of Taking Out Loans for Certificate Programs

•   You owe money with interest: The obvious downside to taking out a loan is that you’ll owe money at the end of your program — with interest. Because a certificate program can generally be completed in a relatively short time frame, though, you may be able to repay your loan (and minimize the interest rate impact) in a short period of time.

•   Choosing the right option can be complicated: You may feel as if you’re in a maze with so many different options at your disposal. It’s a good idea to reach out to a financial aid professional at the school you’ve chosen to go over all your financing options. They can also guide you through the scholarships and grant opportunities that you can obtain.

Explore Private Student Loans With SoFi

It’s almost impossible to ignore the allure of a quick certification that can result in a lifetime of job satisfaction. Options for paying for certification include cash savings, grants, scholarships, federal student loans, and private student loans.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

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

Can federal student loans be used for certificate programs?

Yes, in certain cases, you can get federal student loans to cover the cost of certificate programs. However, your school and program must qualify under the Department of Education rules. Talk to the financial aid office at your college or career center for more information about your eligibility for federal student loans.

Can grants and scholarships be used for certificate programs?

Yes, you can obtain grants and scholarships to cover the cost of certificate programs. Talk to the financial aid office at your college or career center for more information. Your school may offer specific scholarships, but don’t forget to check into professional organizations or local chapters for the certificate program of which you plan to enroll.

Do some companies pay for employee certifications?

Yes, many employers pay for employee certifications to help boost employee retention and put employees at the top of their field. These may differ from certificate programs, however, so make sure you understand how your career-based certification may differ from a certificate. Ask your human resources office for information about continuing education or certification training.

Photo credit: iStock/PeopleImages

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Source: sofi.com

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Moving to Arkansas offers a life filled with Southern charm, outdoor adventures, and community. From the bustling streets of Little Rock to the serene beauty of the Ozark Mountains, Arkansas provides a diverse landscape and a welcoming environment for newcomers. Whether you’re browsing homes for sale in Bentonville, considering renting in Hot Springs, or exploring houses for rent in Fayetteville, here’s what you need to know before moving to Arkansas.

Arkansas at a glance

The Natural State provides a quality life with major cities like Little Rock or the laid-back charm of small towns and scenic countryside. The state enjoys a moderate climate, with hot, humid summers and mild winters, creating a comfortable environment year-round. Arkansas’ economy is diverse, driven by industries such as agriculture, manufacturing, retail, and logistics, providing a variety of job opportunities for its residents.

The state has a thriving arts scene with world-class museums like the Crystal Bridges Museum of American Art in Bentonville, and a growing food culture that reflects its Southern roots. For adventurers, Arkansas offers everything from mountain trails to crystal-clear lakes, including the famous Buffalo National River. Education is another strong point, with a mix of well-regarded public and private schools, as well as universities like the University of Arkansas. Whether you’re drawn to the excitement of city life or the tranquility of the countryside, Arkansas is a great place to live.

1. Arkansas is an affordable state to live

Living in Arkansas is relatively affordable compared to many other states, making it an attractive option for those looking to stretch their budget. Housing costs, in particular, are low, with the median home sale price standing at $258,100 significantly below the national average of $438,706. Renting is just as affordable where a one-bedroom apartment in Little Rock averages $919 a month. Utilities, groceries, and healthcare expenses are also reasonably priced, contributing to a lower overall cost of living. Whether you’re renting or buying, you’ll likely find that your money goes further here than in many other parts of the country.

2. Expect a mild climate with humidity

Arkansas experiences a mild climate with distinct seasons, but the summer months can be particularly hot and humid. Temperatures in July and August often climb into the 90s, and the humidity can make it feel even warmer. Winters are generally mild, with average temperatures ranging from the 30s to the 50s, and snow is rare, especially in the southern part of the state. Spring and fall are pleasant, with comfortable temperatures and vibrant foliage, but be prepared for occasional thunderstorms during these transitional seasons.

Insider scoop: If you’re looking to beat the summer heat, locals often head to the state’s many lakes and rivers, like Lake Ouachita or the Buffalo National River, where cooler water and shaded areas offer a refreshing escape from the humidity.

3. College sports are a big deal here

In Arkansas, college sports, especially football, are a major part of the culture. The University of Arkansas Razorbacks have a passionate following, and game days in Fayetteville are marked by tailgating, team spirit, and packed stadiums. Even if you’re not a die-hard sports fan, you’ll likely find yourself swept up in the excitement during the season. Basketball, baseball, and other college sports also enjoy strong support, making college athletics a significant aspect of community life in the state.

4. The geography is diverse

The landscape in Arkansas has a little bit of everything, from the mountainous regions of the Ozarks and Ouachitas to the flat, fertile lands of the Delta. The state is home to rivers, lakes, forests, and caves, providing endless opportunities for outdoor activities like hiking, fishing, and boating. Whether you prefer exploring rugged trails, enjoying scenic drives, or relaxing by a serene lake, Arkansas’s varied geography ensures there’s always something new to discover. 

Insider scoop: For a unique adventure, locals suggest visiting the lesser-known Blanchard Springs Caverns in the Ozarks, where you can explore stunning underground formations and even take a guided wild cave tour.

5. The Arkansas River Valley offers a slower pace of life

The Arkansas River Valley is a picturesque region known for its rolling hills, charming small towns, and a more relaxed way of life. This area is ideal for those who appreciate the peace and quiet of rural living, but still want access to outdoor recreation like fishing, hiking, and kayaking. The towns in the River Valley have a welcoming, tight-knit community feel, and you’ll find that life moves at a slower, more comfortable pace here. It’s an excellent choice for those looking to escape the hustle and bustle of larger cities.

6. There’s a lot of historical significance in the state

Arkansas is steeped in history, with a rich heritage that includes everything from Civil War battlefields to significant sites in the civil rights movement. Little Rock Central High School, a National Historic Site, is famous for its role in the desegregation crisis of 1957. The state also has numerous historic towns and landmarks, like the Ozark Folk Center and the Arkansas Post, which offer a glimpse into life in earlier times.

Travel tip: When visiting these historic sites, consider taking a guided tour to gain deeper insights and stories from knowledgeable locals, especially at Little Rock Central High School, where the Visitor Center provides a powerful perspective on the events that shaped the nation.

7. Arkansas has a ton of mosquitoes

If you’re moving to Arkansas, be prepared to deal with mosquitoes, especially during the warmer months. The state’s humid climate creates an ideal breeding ground for these pesky insects, particularly in areas near water. Mosquitoes can be more than just a nuisance; they can also carry diseases like West Nile virus, so it’s important to take precautions. Using insect repellent, wearing long sleeves, and eliminating standing water around your home can help reduce the number of bites.

8. The traffic is minimal

One of the perks of living in Arkansas is the relatively minimal traffic compared to more urbanized states. Even in the larger cities like Little Rock and Fayetteville, rush hour traffic is generally manageable, and it’s rare to experience the kind of gridlock seen in major metropolitan areas. The state’s well-maintained highways and scenic byways make for pleasant drives, whether you’re commuting to work or exploring the countryside.

Methodology

Population data sourced from the United States Census Bureau, while median home sale prices, average monthly rent, and data on affordable and largest cities are sourced from Redfin.

Source: rent.com