Companies around the globe — from airlines and hospitals to banks and even courthouses — had operations grounded or disrupted by what was supposed to be an uneventful software update pushed out early Friday by CrowdStrike, a cybersecurity firm whose software is used by some of the largest corporate and government agencies in the world.
“This was not a cyberattack,” CrowdStrike said in a statement. “The issue has been identified, isolated and a fix has been deployed.”
The CrowdStrike issue came on the heels of a widespread outage involving Microsoft’s cloud platform, Azure, on Thursday night. Microsoft said the issues were unrelated. The CrowdStrike update affected customers running a version of the Windows operating system.
NBC News called the outage “arguably the largest global information technology outage in history.” At least five U.S. airlines — American Airlines, Allegiant Air, Delta, Spirit and United — issued ground stops on Friday, leaving airports around the world with crowded terminals and endless customer service lines. (Some flights have resumed.) Hospitals that experienced issues with their computer systems had to cancel non-urgent surgeries. In several states, 911 emergency lines were down.
Downdetector, a website that employs user reports and online indicators to report technical outages, detected user issues at dozens of U.S. companies. NerdWallet was not directly affected by the outage.
As of 1 p.m. ET, Downdetector was still reporting spikes in potential user issues at these companies:
Bank guarantees are often used in real estate contracts and infrastructure projects, while letters of credit are primarily used in global transactions. But a bank guarantee and a letter of credit are quite similar.
With both instruments, the issuing bank accepts a customer’s liability if the customer defaults on the money it owes, and they both, effectively, are a show of good faith from a lending institution that ensures the bank will step up if a debtor can’t cover a debt.
What Is a Bank Guarantee?
Bank guarantees represent a more significant contractual obligation for banks than letters of credit do. With a guarantee, the seller’s claim goes first to the buyer, and if the buyer defaults, then the claim goes to the bank.
Bank guarantees serve a key purpose for businesses. The bank, through their due diligence of the applicant, provides credibility to them as a viable business partner in a particular business dealing. In essence, the bank puts its seal of approval on the applicant’s creditworthiness, co-signing on behalf of the applicant as it relates to the specific contract the two external parties are undertaking.
A bank guarantee is an assurance from a bank regarding a contract between a buyer and a seller. Essentially, the bank guarantee acts as a risk management tool. A bank guarantee provides support and assurance to the beneficiary of the payment, as the bank guarantee means that the bank is assuming liability for completion of the contract.
This means that if the buyer defaults on their debt or obligation, the bank makes sure the beneficiary receives their payment.
Any business may benefit from a bank guarantee, but especially small businesses that would be more affected if a payment from a business partner or customer falls through.
Bank guarantees only apply to a certain monetary amount and last for a set period of time. There will be a contract in place that dictates in which scenarios and at what point in time the guarantee is applicable.
Before taking on a bank guarantee, the bank does research on the applicant to make sure they are credible and will act as a reliable business partner. In a way, a bank guarantee serves as a seal of approval as the bank has good reason (they’re on the hook for the money) to only accept creditworthy applicants.
Types of Bank Guarantees
There are a few different types of bank agreements, here’s a closer look at the main ones.
Financial Bank Guarantee
With a financial bank guarantee the bank guarantees that the buyer repays all debts they owe to the seller and if they fail to pay those various types of debts, the bank has to assume responsibility for the money owed. The buyer will need to pay a small initial fee when the guarantee is issued.
Performance-Based Bank Guarantee
When it comes to a performance-based guarantee, the beneficiary has the right to seek reparations from the bank if contractual obligations aren’t met due to non-performance. If the counterparty doesn’t deliver on promised services, then the beneficiary will have the choice to claim resulting losses caused by the lack of performance.
Foreign Bank Guarantee
Foreign bank guarantees can apply to unique scenarios such as international export situations. In this case, there may be a fourth party involved — a correspondent bank operating where the beneficiary resides.
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What Is a Letter of Credit?
A letter of credit (sometimes referred to as a credit letter) is a document provided by a financial institution such as a bank or credit union that guarantees a payment will be made during a business transaction. The bank acts as an impartial third party throughout the transaction.
When the bank issues a letter of credit, they are assuring that the purchaser will in fact pay for any goods or services on time and in full. If the buyer doesn’t make their payment on time and in full, the bank that issued the letter of credit will guarantee that they will make the payment instead. The bank will cover any remaining overdue balance as long as it doesn’t surpass the full purchase amount.
Letters of credit are commonly used in international trade (but can be used domestically as well) where, understandably, companies require more certainty when making deals across borders. A letter of credit can provide security and confidence to importers and exporters since they know the issuing bank guarantees the payment.
Applicants for letters of credit need to work with a lender in order to secure this backing. The applicant will need to provide a purchase contract, and a copy of the purchase order or export contract (among other documents) during the application process. Applicants will pay a fee to obtain the letter of credit and it usually equates to a percentage of the amount the letter of credit backs.
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Types of Letters of Credit
There are multiple types of letters of credit, with some being more common than others, and some applying to unique situations. Here’s a look at the main types.
Commercial Letter of Credit
This type of letter of credit applies to commercial transactions and is commonly used for international trade deals. In this case the bank makes a direct payment to the beneficiary.
Standby Letter of Credit
A standby letter of credit acts as a secondary payment method. The bank will pay the beneficiary if they are able to prove they didn’t receive the promised product or service from the seller.
Revolving Letter of Credit
A revolving letter of credit can help secure multiple transactions when two parties anticipate doing multiple deals.
Traveler’s Letter of Credit
With a traveler’s letter of credit, the issuing bank guarantees to honor letters of credit signed at certain foreign banks.
Confirmed Letter of Credit
This type of letter of credit specifies that the seller’s bank will be the party to ensure that the seller receives payment if the buyer and their issuing bank default on the agreement.
Special Considerations
Bank guarantees and letters of credit differ slightly, but both serve the same purpose: to give confidence and protection during transactions.
Because the financial institutions that back these guarantees confirm that the buyer is creditworthy in the case of a bank guarantee or a letter of credit, the seller can be confident that the transaction should go through as planned if they have one of these agreements in place. If it does not, they know they’ll still receive payment from the institution that backed the agreement.
Key Differences between a Bank Guarantee and Letter of Credit
These are the most important differences to know about a bank guarantee vs. a letter of credit.
Liability
With some letters of credit the bank pays the seller directly so they take on the primary liability.
With a bank guarantee they only pay if the buyer fails to do so, so they take on a secondary liability.
Risk
The bank takes on more risk with a letter of credit as they take on the primary liability, but that means the seller and customer take on more risk with a bank guarantee.
Number of Parties Involved
At least three parties are involved in letters of credit and bank guarantee transactions. To start there is the buyer, seller, and a bank or other type of financial institution. With a letter of credit, a lender also gets involved. Sometimes two banks (more common in foreign transactions) are involved in a letter of credit or bank guarantee.
Payment
With a bank guarantee, the bank only makes payment if the buyer fails to do so. With a letter of credit this is also usually the case, but the bank can be more involved in the transaction, so disputes tend to be resolved faster.
The Takeaway
When considering a letter of credit versus bank guarantee, both can help two parties involved in a transaction feel more confident that the seller will be paid and the buyer will receive the goods or services promised — or they will be reimbursed by the bank that issued the agreement. Each type of agreement may be especially helpful when conducting business across borders.
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FAQ
How is a letter of credit different from a bank guarantee?
When it comes to a bank guarantee vs. a letter of credit, both letters of credit and bank guarantees function very similarly. The main difference is that with a letter of credit the bank takes on more risk than they do with a bank guarantee.
What is a bank guarantee and how does it work?
A bank guarantee is an assurance from a bank that a contract between a buyer and a seller will be executed or they will reimburse the wronged party accordingly.
What is the primary difference between a standby letter of credit and a bank guarantee?
The main difference between a letter of credit and a bank guarantee is risk level. With a bank guarantee the bank takes on less risk than they do with a letter of credit.
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Fintech Sagent hired Jaime Gow, a former executive at Mr. Cooper and First Horizon Bank, as its new chief financial officer. The hiring coincided with the departure of the company’s chief technology officer, Uday Devalla.
Warburg Pincus-backed Sagent highlighted Gow’s background in servicing as a reason for hiring him. That’s the exact space in the mortgage industry that the company wants to target with its software platform, Dara, which was launched in February.
Gow will oversee financial operations, lead strategic planning and dealmaking with customers, and ensure long-term investment in Sagent’s platforms, including Dara, the company said.
Sagent CEO Geno Paluso, a retired U.S. Navy captain who served at BAE Systems until joining the company in February, noted that Gow has led different lending businesses, including de novo banks, regional banks and industry leaders like Mr. Cooper.
Gow also “knows every detail that mortgage servicers need to win, and he’ll make Sagent a stronger-than-ever strategic partner to our customers and prospects,” Paluso added.
Gow comes to Sagent after serving as executive vice president and strategic adviser at Mr. Cooper, which has a close relationship with Sagent as exemplified by a multiyear agreement signed in February 2022. Mr. Cooper sold certain intellectual property rights for its cloud-based technology platform to Sagent and received a minority equity stake in the fintech company.
Chris Marshall was another executive who transitioned between the two companies this year. The former vice chairman and president of Mr. Cooper became executive chairman of Sagent in January.
Mr. Cooper is also the first client on the Dara platform, which is expected to be fully implemented in early 2025.
“Sagent’s new Dara platform can lower servicer operational costs across all mortgage servicing areas, like boarding, cash processing, escrows, call center, loss mitigation, and claims,” Gow said in a statement. “A big part of my job is to help our customers and prospects find and maximize these efficiencies in their own operations.”
In another executive move at Sagent, CTO Uday Devalla departed four months after launching Dara. In a social media post, he said that July 12 was his last day at the company.
“Over the past 4+ years, I’ve had an incredible experience working at Sagent, leading the technology and production teams driving much-needed innovation in the $14 trillion mortgage servicing sector,” Devalla wrote.
A spokesperson at Sagent told HousingWire that Devalla left “to pursue new opportunities.”
“He’s been an integral teammate who helped create our multi-year execution strategy to modernize our industry. Key to this execution was assembling a world-class mortgage servicing fintech team — including senior leaders — to build our Dara vision and innovate today’s platforms for customers. This global team runs day-to-day operations, and we’re vetting candidates to replace Uday’s role,” the spokesperson wrote.
Looking for the best ways to get free money from the government? Getting free money from the government might sound too good to be true, but there are actually several ways you can receive financial assistance. From helping with monthly expenses to finding unclaimed funds, these programs and resources can be a big help. The…
Looking for the best ways to get free money from the government?
Getting free money from the government might sound too good to be true, but there are actually several ways you can receive financial assistance. From helping with monthly expenses to finding unclaimed funds, these programs and resources can be a big help. The key is knowing where to look and meeting eligibility requirements.
This article will show you different ways to get extra money from the government. Whether you need help with your bills or want to get back money that belongs to you, there are many options for you.
Best Ways To Get Free Money From the Government
Below are the best ways to get free money from the government – for housing, children, health insurance, food, and more.
1. Apply for unemployment benefits
If you lose your job, you might be eligible for unemployment benefits. These benefits can help you cover some of your expenses while you look for a new job.
To qualify, you usually need to have worked a certain amount of time in the past year. Each state has its own rules, so you should check your state’s specific requirements.
You can apply for unemployment benefits online or by phone, and be ready to provide details about your recent jobs and earnings. This will help determine how much you can get each week.
The benefit amount is based on a percentage of your earnings from your previous job. It can range from about 40% to 60% of your past earnings. This money can be a helpful bridge while you search for new work.
Each week, you’ll need to report if you’re still unemployed and looking for a job. Some states may also ask you to document your job search activities so it’s important to follow these rules to keep receiving benefits.
Unemployment benefits probably won’t cover all your expenses, but they can make a tough time a little easier. Remember to apply as soon as you lose your job to start getting support right away.
2. Check for child tax credits
Child tax credits can be a big help for families.
You might be able to get money back from the government if you have kids such as for childcare or for just having children. The amount you can get depends on your income and the number of kids you have.
The Child Tax Credit now gives up to $2,000 for each child.
Make sure you check if you qualify for these credits. You can find out more by visiting the IRS website or talking to a tax expert.
3. Women, Infants, and Children (WIC)
The Women, Infants, and Children (WIC) program helps pregnant women, new mothers, and young children get healthy foods. This program is a great way to get extra help when you need it the most, and this is free government money for low-income families. It’s focused on keeping you and your little ones healthy and well-fed.
If you’re pregnant, you can get help right away and continue to receive it for up to six months after giving birth. If you have children, they have to be under the age of 5.
To qualify, you need to meet income guidelines and show that you are at nutritional risk. This can include being underweight or having a diet low in essential nutrients. WIC then provides monthly benefits that can be used to buy specific foods like milk, eggs, and fruits.
To apply, you need to contact your state or local WIC office (you can start by Googling “WIC + your state name”). They will tell you what documents to bring and where to go for your appointment.
4. Use SNAP for food assistance
SNAP stands for Supplemental Nutrition Assistance Program. It’s a government program that helps low-income families buy healthy food. If you qualify, you get an EBT card loaded with funds every month.
Using SNAP is easy. You can use your EBT card at most grocery stores and it works just like a debit card.
To qualify for SNAP, you need to meet certain income and other eligibility requirements. These can include having a low income based on your household size.
SNAP can be a huge help if you’re struggling to afford groceries. It allows you to buy essential foods like fruits, vegetables, meats, and dairy products.
5. Free and reduced breakfast and lunch at school
Your child may be able to get free or reduced-price meals at school through several programs, and these programs make sure kids have healthy meals every day.
The most well-known program is the National School Lunch Program (NSLP). It provides low-cost or free lunches to millions of children in public and nonprofit private schools.
Schools many times also have the School Breakfast Program. This is similar to the lunch program but focuses on providing a nutritious morning meal.
In addition to these programs, there is the Special Milk Program. This program provides milk to children who do not participate in other meal programs.
Some schools offer the Community Eligibility Provision (CEP). This allows schools in high-need areas to serve breakfast and lunch at no cost.
To find out if your child is eligible, check with your school. They can guide you through the application process and let you know what your child qualifies for.
6. Seek Temporary Assistance for Needy Families (TANF)
Temporary Assistance for Needy Families (TANF) is a government program that can help you if you’re facing hard times. It provides financial aid to families with children who are struggling to make ends meet and can help with childcare, job training, and finding work.
To apply for TANF, you need to contact your local TANF office. They will help you through the application process and let you know what documents you need.
It’s important to know that each state runs its own TANF program, so the benefits and services might vary. Be sure to ask your local office (you can also reach out to the U.S. Department of Health and Human Services) what specific help they can offer.
7. Low-Income Home Energy Assistance Program (LIHEAP)
If you need help paying your energy bills, you might qualify for the Low-Income Home Energy Assistance Program (LIHEAP). This program helps low-income households with their heating and cooling costs.
LIHEAP provides federal funds to reduce energy costs. This can include help with your energy bills and dealing with energy crises.
You can also get help making your home more energy-efficient. This is known as weatherization and might include things like adding insulation or fixing drafty windows.
8. Early Intervention and Head Start
Early Intervention services are great for families with young children who have special needs. These services help kids from birth to age three. They offer things like speech therapy, occupational therapy, and more. Most services are free, and others have a sliding scale fee. They make sure your child gets the help they need, even if you can’t pay.
Head Start programs are for kids aged three to five. They help with early learning and development. Head Start also supports families with health and dental services.
Both Early Intervention and Head Start focus on getting kids ready for school. They help children learn and grow in important ways and also support families by connecting them to resources they may need.
You can usually self-refer your child to these programs (each state has its own), or ask your pediatrician for a referral.
9. Apply for college grants
College grants are a great way to get free money for school. Unlike loans, you don’t have to pay back grants. They can help cover your tuition, books, and other school expenses.
One of the most well-known grants is the Pell Grant. For the 2023-24 school year, the maximum Pell Grant is $7,395. This grant is for students with financial need.
Another option is the Federal Supplemental Educational Opportunity Grant (FSEOG). This is for students with exceptional financial need. The amount you can get depends on your school and your financial situation.
To apply for these grants, you’ll need to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA helps the government determine how much aid you qualify for.
Many states and schools also offer their own grants. Check with your school’s financial aid office to see what you might be eligible for. It’s a good idea to apply for as many grants as you can.
Grants can make a big difference in paying for college, so it’s worth the effort to apply. Make sure to look for scholarships too!
10. Public Student Loan Forgiveness (PSLF) program
The Public Student Loan Forgiveness (PSLF) program can help if you work in public service. This includes jobs like teaching, nursing, firefighting, and more. If you work in these fields and have federal student loans, you may be able to get your remaining loan balance forgiven after ten years of payments.
To qualify, you must work full-time for a qualified government or nonprofit organization. You also need to make 120 qualifying monthly payments under a qualifying repayment plan. Only payments made after October 1, 2007, count toward the 120 payments required.
The program mainly benefits people who work in low-paying, but important, public service jobs. It’s a way to give back while also getting financial relief. Though the application process can be long and require careful tracking, many find the effort worth it when their loans are wiped out.
11. Claim Earned Income Tax Credit (EITC)
The Earned Income Tax Credit (EITC) gives low- to moderate-income workers and families a tax break.
If your income is under a certain amount, you might qualify. This credit can either reduce the taxes you owe or increase your refund. For 2024, the EITC amounts can go up to $3,995, based on your income and family size.
To claim the EITC, you need to file a tax return, even if you do not owe any taxes. You should fill out Form 1040 and a Schedule EIC if you have qualifying children.
12. Get housing vouchers
Housing vouchers are a great way to get help with rent. They are commonly known as Section 8. These vouchers help low-income families, seniors, and people with disabilities afford safe and decent housing.
To get a voucher, your income must be below a certain level and this varies by location and family size.
With a voucher, you can choose any housing that meets program requirements. This gives you some freedom to pick a home that suits your needs best. The government will pay part of the rent, making it more affordable for you.
13. See if you qualify for down payment assistance
Buying a home can be tough, especially when it comes to saving for a down payment. That’s where down payment assistance programs can help prospective homeowners.
These programs come in many forms. You might find grants, loans, or other types of aid to help you with the down payment. Each state offers different programs and some are more generous than others.
To qualify, you’ll need to meet certain requirements. These can include income limits or being a first-time homebuyer.
14. Apply for Supplemental Security Income (SSI)
Supplemental Security Income (SSI) is a program that gives monthly payments to people who are disabled, blind, or over 65 and have limited income. You may get help with food, rent, and medical bills.
To apply for SSI, visit the Social Security Administration (SSA) website. There, you can find the application forms and details about the process. You may need to provide information about your finances and living situation.
The application can be done online, by phone, or in person. If you’re under 18 or applying for someone under 18, there are special forms for children.
15. Look for health insurance in the marketplace
We all know that health insurance can be very expensive. Before you skip it, I highly recommend comparing pricing of health insurance on the Health Insurance Marketplace to see if you can find something more affordable for you and your family.
It’s a great way to get coverage and possibly save money. Sometimes, if you qualify, you can get free or low-cost health insurance plans.
Go to Healthcare.gov to start, and each state has its own Marketplace, so follow the specific steps for your state. It can be a little confusing, so make sure you have no distractions and can spend some time doing this.
During the open enrollment period, you can choose a new plan or keep your current one. If you’ve had a big life event, like losing your job, you might qualify to sign up outside the usual enrollment times.
16. Medicaid
Medicaid is a state and federal program that helps people with low incomes get health care. If you qualify, you can receive free or low-cost medical services, like doctor visits, hospital stays, and even prescription drugs.
Medicaid is especially helpful for families, pregnant women, seniors, and people with disabilities.
One of the best parts is that Medicaid covers a wide range of services – you can get help with dental care, mental health services, and even long-term care.
Your income and family size usually determine if you can get Medicaid.
17. Search for unclaimed money
You might have unclaimed money waiting for you. This money comes from many sources like unpaid wages, forgotten bank accounts, or unclaimed insurance benefits.
You can check by going to unclaimed.org, the website managed by the National Association of Unclaimed Property Administrators (NAUPA).
Each state has its own database for unclaimed property. Check your state’s website to see if there is money owed to you.
Frequently Asked Questions
There are several ways you can get money from the government to help with different needs, like paying for food or getting extra support if you don’t make a lot of money.
What ways can I get money from the government?
There are many ways to get free government money. You can apply for unemployment benefits if you lose your job. Families can also check for child tax credits, which give extra money for children. Programs like WIC and SNAP can help with paying for food, and students can get free and reduced breakfast and lunch at school.
How can I get help from the government if I don’t make a lot of money?
Low-income families can use programs like WIC (Women, Infants, and Children), SNAP (Supplemental Nutrition Assistance Program), TANF (Temporary Assistance for Needy Families), LIHEAP (Low-Income Home Energy Assistance Program), and more to get help from the government if they don’t make a lot of money.
How can I borrow money from the government?
The government offers student loans for education through programs like FAFSA. Small businesses can apply for loans from the Small Business Administration (SBA). There are also some loan programs based on specific needs like starting a farm or buying a home.
What is FAFSA?
FAFSA stands for Free Application for Federal Student Aid. It’s a form that students fill out to get financial aid for college. It can help you get grants, loans, and work-study opportunities to pay for your education.
Can I borrow money from my social security benefits?
No, you cannot borrow money from your Social Security benefits. Social Security is designed to provide income during retirement or if you become disabled, so it’s not a source of loans or advance cash.
Is there free grant money for bills and personal use?
Yes, there can be grants for specific needs like paying utility bills or home repairs. You might also find grants for education, food, and health care. Check with local and federal agencies to see if you qualify for any of these grants.
How do I find out if I qualify for any government assistance?
You can visit government websites or contact local agencies. Many state and local governments have online tools to check your eligibility. It’s also helpful to reach out to community organizations that can guide you through the application process.
How To Get Free Money From the Government – Summary
I hope you enjoyed this article on the best ways to get free money from the government.
There are many ways to get free money from the government, such as for housing, to help pay for your children’s expenses, to afford health insurance, to buy food, and more.
Note: There may be changes or updates to the free government programs above. I recommend contacting the program to learn more. Also, please be sure to stay safe with your sensitive information and only use official websites (look for .gov websites and official government organization websites to start with to avoid scams).
What do you think of these free government programs? Have you ever used any of the ways above to get free money from the government?
Thinking about calling the Ocean State home? Rhode Island boasts beautiful coastal landscapes, lively urban areas, and a growing tech industry, making it a popular choice for newcomers. Whether you’re searching for homes for sale in Providence, looking to rent in Newport, or considering houses for rent in Warwick, here’s what you need to know before moving to Rhode Island.
Rhode Island at a glance
Rhode Island, known as the Ocean State, provides coastal beauty, lively culture, and economic diversity. Its humid continental climate brings warm summers and cold winters, perfect for enjoying its 400 miles of coastline. Providence, the capital, anchors the state’s largest cities, alongside Warwick and Cranston, each offering a mix of urban amenities and residential charm. Major industries include healthcare, education, manufacturing (especially jewelry), and a growing tech sector. Renowned educational institutions like Brown University and the Rhode Island School of Design contribute to a rich cultural landscape, highlighted by festivals, museums like the RISD Museum, and events like WaterFire. Affordable places to live are particularly found in smaller towns and coastal communities, making Rhode Island an appealing choice for those seeking a balanced lifestyle of culture, education, and coastal living.
1. Rhode Island is well-known for its WaterFire event
Rhode Island is renowned for its spectacular WaterFire event, an experience that transforms Providence’s rivers into a glowing spectacle. Held from late spring through autumn, WaterFire features over 80 braziers set alight along the rivers, accompanied by music. Performers, including fire twirlers, musicians, and dancers, enhance the atmosphere, creating a multi-sensory experience for attendees. You can walk along the riverbanks, enjoy the scents of wood smoke and seasonal blooms, and explore art installations and local vendor stalls that appear during the event.
Travel tip: Arrive early to secure a good viewing spot, and consider bringing a blanket or portable chair for comfort. For an even more memorable experience, book a gondola ride to enjoy the illuminated rivers from the water and gain a unique perspective of the event.
2. It’s expensive to live here
Living in Rhode Island comes with a high cost of living, particularly in sought-after areas like Providence and Newport. The median home sale price in Rhode Island is around $522,100, with rental averages for a one-bedroom apartment in Providence hovering around $2,075 per month. Groceries, utilities, and general expenses also surpass the national average, making day-to-day living more expensive. In fact, the cost of living in Providence is 12% higher than the national average. Comparatively, cities like Coventry and Cranston offer more affordable options, though they still reflect the overall higher cost of the state.
When considering a move, it’s essential to weigh the pros and cons of living in Rhode Island. The state offers stunning coastal landscapes, making it an attractive place to live. However, the high cost of living and elevated property taxes can be significant drawbacks.
3. Rhode Island has many seafood specialities
You’ll find a rich seafood heritage in Rhode Island, with many local specialties that seafood lovers will enjoy. Clam cakes and clam chowder are regional favorites, with the creamy, flavorful chowder often distinguished by its unique, clear broth. Another local delicacy is the stuffed quahog, a savory clam-filled dish that’s a staple at many seafood restaurants.
Insider scoop: For an authentic taste of Rhode Island, visit the iconic Monahan’s Clam Shack in Narragansett for some of the best clam cakes and chowder in the state.
4. Get ready to hear many different accents
In Rhode Island, you’ll encounter a fascinating array of accents that reflect the state’s diverse cultural and historical influences. In Providence, the accent tends to blend elements of Boston and New York speech patterns, featuring distinctive pronunciations and local slang. Venture to the coastal towns, and you might notice a more laid-back, maritime lilt in the speech, influenced by the state’s rich seafaring history. In contrast, the southern regions, such as Newport, exhibit a more neutral accent with subtle regional variations.
5. Rhode Island is less than 40 minutes wide
As the smallest state in the nation, Rhode Island spans less than 40 minutes from east to west, making it remarkably compact. Living in Rhode Island means enjoying a tiny yet vibrant state that packs a lot into its limited space, from the scenic coastal beauty of its beaches to the historic charm of its colonial-era towns. You can easily explore a range of experiences in a single day, whether it’s strolling through Providence’s bustling downtown, relaxing on the shores of Newport, or enjoying the quaint atmosphere of Wickford.
6. There are many quaint towns to explore
Rhode Island is dotted with charming, small towns that each offer their own unique appeal. Places like Newport, with its historic mansions and stunning coastal views, and Bristol, known for its well-preserved colonial architecture and Main Street, provide a quintessential New England experience. Additionally, towns like Narragansett and Wickford provide beautiful waterfronts and a relaxed, small-town atmosphere.
7. The property taxes are among the highest in the nation
Property taxes in Rhode Island are among the highest in the nation, a significant consideration for anyone planning to become a homeowner. With an effective property tax rate of about 1.30%, Rhode Island ranks in the top tier for tax burden on homeowners. For renters thinking of becoming homebuyers, it’s crucial to factor in these additional costs when budgeting for a home purchase.
8. The state’s infrastructure faces challenges
Rhode Island’s infrastructure faces significant challenges, a factor that should be carefully considered by anyone planning to move to the state. Issues such as aging roadways, frequent traffic congestion, and outdated public transportation systems can pose daily inconveniences for residents. The state’s road conditions are often cited as some of the worst in the country, with potholes and ongoing construction projects causing delays and damage to vehicles.
9. Independence day is a big deal
Independence Day is a major event in Rhode Island, celebrated with unparalleled enthusiasm and community spirit. The town of Bristol is especially renowned for its Fourth of July festivities, hosting the oldest continuous Independence Day celebration in the United States, dating back to 1785. The celebration includes a spectacular parade, fireworks, concerts, and various activities, drawing visitors from across the state to celebrate.
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.
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Student loans are often the go-to choice for families who need help paying for a child’s college education. But as you put together your financing plan, you may find there are other options worth considering — including using a home equity line of credit, or HELOC, to cover some college costs.
Both types of borrowing have advantages and disadvantages that may influence your decision to use one or both to pay for school. Read on for a look at student loans vs. HELOCs, and how each can be used to help with your family’s educational and financial goals.
What Is a HELOC?
A home equity line of credit, or HELOC, is a revolving line of credit provided by a private lender and secured with the equity you have in your home.
HELOCs are sometimes confused with home equity loans, but they are not the same thing. Because a HELOC is a line of credit, you pay interest only on the amount of money you’ve actually borrowed. Payments can vary from month to month, and as you replenish the account by making payments, you can borrow from it again. With a lump-sum home equity loan, a borrower receives all the money upfront and pays interest on the entire loan amount from day one.
A HELOC can be used to pay for just about anything — including tuition, books and supplies, housing, transportation, and other college expenses. But because the line of credit is secured with your home, if you fall behind on your payments, you could risk foreclosure. And should you decide to sell your home, you may be required to repay what you currently owe.
Recommended: Different Types of Home Equity Loans
What Are Student Loans?
Student loans allow students and, in some cases, their parents, to borrow money to pay for a college education. Here’s how the two main types of student loans work:
Federal Student Loans
There are a few different types of federal student loans, and each has its own rules when it comes to how much you can borrow and how the money is repaid. But generally, they offer lower interest rates than many other types of loans and include more protections for borrowers, including temporary relief programs in case of financial hardship, and even the potential for loan forgiveness.
To apply for federal student aid, you must submit the Free Application for Federal Student Aid (FAFSA®) form. If you qualify for assistance and accept what’s offered, the school will apply your federal loan funds to your outstanding account charges (tuition, fees, etc.). Whatever is left after that will then be turned over to you to use for other educational costs.
Private Student Loans
Private student loans are issued by nongovernment lenders, such as banks, credit unions, and other financial service companies. Because they aren’t backed by the federal government, these loans do not offer the same repayment options or safety-net protections as federal loans. So, if your family (student and/or parents) qualifies for federal student loans, you’ll probably want to tap those first. However, if you’ve exhausted your federal financial aid and require additional funds, you may find you can get the help you need by borrowing through a private lender.
Key Differences Between a HELOC and Student Loans
While you may decide to use federal or private student loans, a HELOC, or all three types of financing to help pay for a college education, it’s important to be aware of some key differences in how they work.
Interest Rates
• Federal student loans are usually the way to go for borrowers who are looking for the lowest interest rates available. These loans come with a fixed interest rate that is set by the government, so once you sign on the dotted line, you can expect to pay the same rate for the life of the loan. But different types of federal student loans have different interest rates, and the way interest starts accruing on these loans also varies. If you have a subsidized loan, for example, you won’t accrue any interest while you’re in school, for six months after you leave school, or during any deferment. The U.S. Department of Education pays the interest during these periods. The interest on an unsubsidized loan starts accruing immediately, however, and it is the borrower’s responsibility.
• Private student loans are generally available with a choice of a fixed or variable interest rate, but these rates, which are set by the individual lenders, can vary quite a bit — so it can be a good idea to shop for the most competitive offer based on your creditworthiness and other qualifications.
• HELOCs have a variable interest rate, which means the rate can fluctuate over time. This could be good or bad, depending on which way interest rates are going. If rates drop, the borrower could benefit; but if they rise, it may make it harder to keep up with the payments. Still, because a HELOC is secured with your home, the interest rate may be lower than with other types of unsecured borrowing, such as personal loan or credit card. And because it’s a line of credit and not a lump-sum loan, you’ll only be charged interest on the amount you’ve actually borrowed.
Recommended: Student Loan Interest Rates Guide
Fees
• Federal student loan borrowers are often surprised to learn they’ll be expected to pay an origination fee on each loan they receive. Origination fees are currently 1.057% for federal subsidized and unsubsidized loans for undergraduate and graduate students, and 4.228% for federal PLUS loans for parents and graduate students. The lender who is servicing the loan also may charge a fee if a payment is more than 30 days late.
• Private student loan fees also can vary based on the lender you choose. Some may charge an origination fee or fees for late payments, while others, including SoFi, have zero fees on student loans.
• HELOC fees can vary depending on the lender, but they often include an application/origination fee, notary fee, title search, appraisal fee, credit report fee, document prep fee, and recording fee. There also may be an annual maintenance fee, and charges for early termination or account inactivity.
Repayment Terms
• Federal student loans offer the most repayment options for borrowers, including a fixed payment plan that ensures loans are paid off within 10 years and income-driven plans that base your monthly payment on your earnings and your family size. Some borrowers also may be able to have a portion of their loans forgiven. And those who have multiple federal student loans may choose to consolidate them into a single Direct Consolidation Loan. Another plus: Student and parent borrowers may be eligible for a deferment period if they become unemployed, experience an economic hardship, or serve in the military.
• Private student loans have different repayment terms depending on the lender, and can often be repaid over a period of 10 to 15 years or longer, usually starting six months after graduation. There is no loan forgiveness with a private student loan, but some lenders, including SoFi, may offer borrowers a student loan deferment period that’s similar to what some federal loans offer. However, you can expect your loan to continue accruing interest during this time.
• HELOC borrowers usually are required to make at least a minimum monthly payment during their account’s “draw” period. When the draw period ends — typically after 10 years — access to the line of credit ends and the lender sets up a repayment schedule based on the balance owed.
Credit Requirements
• Federal student loan borrowers who are undergraduates don’t have to worry about passing a credit check as part of their application process — and they don’t need a cosigner to get a loan. Though parents and graduate students do have to pass a credit check to get a federal loan, there’s no required minimum credit score.
• Private student loan lenders may have different credit requirements, but all borrowers (including undergraduates) should expect to go through a credit check. Lenders generally will be looking for a solid credit history, a good-to-excellent credit score, and other factors that show the borrower — alone or with the help of an eligible student loan cosigner — has the ability to repay the loan.
• HELOC credit requirements can vary, but typically lenders require that you have at least 15% to 20% equity in your home, a healthy debt-to-income ratio that shows you can afford to take on the added debt load, and a credit score that indicates you can reliably repay the money you owe.
Tax Deductibility
• Federal student loan interest payments can qualify for a tax deduction of up to $2,500, as long as you used the loan to pay eligible higher education expenses for yourself, your spouse, or a dependent. And you don’t have to itemize deductions on your return to get the tax break: The interest you pay is considered an income adjustment, so there’s no separate form to fill out.
• Private student loan interest payments qualify for the same tax deduction as federal student loans, with the same requirements.
• HELOC borrowers can only claim their interest payments as a deduction if they used the borrowed funds to “buy, build, or substantially improve your home.” Interest paid on money used for college doesn’t qualify for a tax break.
Borrowing Limits
• Federal student loans have different borrowing limits based on the loan type and your student status (undergraduate or graduate) or if you’re a parent.
• Private student loan limits can vary by lender; there is no set borrowing limit as with most federal loans. However, the maximum amount you can borrow may be based on your school’s estimated cost of attendance minus any other forms of financial aid you receive, your creditworthiness, and other factors.
• HELOC lenders typically will allow you to tap into your home equity for 85% or more of your home’s current appraised value minus the amount you currently owe, So, for example, if your home is valued at $350,000 and you owe $250,000, you might qualify for a HELOC that’s $47,500 ($350,000 x 85% = $297,500 – $250,000 = $47,500).
Alternative Options
Although a HELOC can be used to pay for college — especially if you find you need more money than you can get in student loans — there are other options that could help your family manage education costs.
Scholarships and Grants
A wide range of scholarships and grants are available to students who are willing to take the time to do some research and apply. And this type of financial aid, which can come from private organizations, colleges, and other sources, doesn’t have to be repaid.
Work Study or a Part-Time Job
A work-study program or part-time job can also help pay some college costs. A student can check with the financial aid office at his or her school to learn more about participating in federal or state work-study programs. And local businesses like coffee shops, restaurants, retail stores, and markets often hire college workers to help out at night and on the weekends.
529 Plans
If your student is still a few years away from attending college, you may want to look into a state-sponsored 529 college savings plan, also known as a qualified tuition program. These tax-advantaged plans offer parents and others an opportunity to save ahead for a family member’s college expenses.
The Takeaway
Using a HELOC vs. student loans to pay for college has advantages and disadvantages. Because you only have to pay interest on the amount you actually borrow, a HELOC can be an affordable alternative, or addition, to lump-sum student loans. And since your home is used as collateral with a HELOC, the interest rate may be lower than with some other borrowing options. Of course, this also means you could lose your home if you can’t make your HELOC payments.
You may want to exhaust any federal financial aid for which your family is eligible — and check out potential private student loan offers — before turning to a HELOC for help. Federal student loans offer borrower protections you can’t expect with a HELOC, and you won’t be putting your home at risk.
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 I use both a HELOC and student loans?
Yes, if the federal financial aid for which you are eligible doesn’t cover all your college costs, you may choose to combine a HELOC with both federal and private student loans. You may want to compare all your options before moving forward, however, and it may be helpful to make a plan for how you expect to use and repay the money you borrow.
Does the interest rate on a HELOC vary?
Yes, a HELOC comes with a variable interest rate, which means the interest rate you pay could fluctuate based on movements in the underlying benchmark interest rate or index.
Are student loan interest rates fixed?
Federal student loans have fixed interest rates, so you’ll pay the same rate for the life of the loan. Private student loans may be offered with a choice of a fixed or variable interest rate.
Can you use a HELOC to pay off student loans?
If you can qualify for a lower interest rate, you might consider using a HELOC to pay off your student loans. But it’s important to keep in mind the upfront and ongoing costs that come with a HELOC — and you’ll lose the tax deduction you receive for the interest paid on your student loans. You’ll also lose the protections that student loans offer borrowers, and you could put your home at risk if it turns out you can’t make your HELOC payments.
Photo credit: iStock/andresr
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Las Vegas, famously known as “Sin City,” is renowned for its vibrant nightlife, world-class entertainment, and bustling casino scene. Beyond the glittering lights of the Strip, Las Vegas offers a unique lifestyle with its own set of advantages and challenges. Whether you’re considering a high-rise apartment in downtown Las Vegas or a suburban apartment in Summerlin, this Redfin article will help you weigh the pros and cons of living in Las Vegas.
Fast facts about living in Las Vegas
Population: Approximately 650,000 residents
Average rent: $1,330 per month for a one-bedroom apartment
Median home sale price: $450,000
Public transit: RTC Transit provides bus services throughout the city
Public parks: Over 100 parks and green spaces for recreation and relaxation
Annual tourists: Approximately 42 million visitors each year
Restaurants: Over 5,000, offering a variety of cuisines from around the world
1. Pro: Entertainment capital of the world
Las Vegas is internationally known as the Entertainment Capital of the World. The city offers an unparalleled array of entertainment options, from world-class shows and concerts to high-energy nightclubs and casinos. Residents can easily enjoy performances by top artists, Broadway-style productions, and major sporting events. Las Vegas also hosts big annual events like the Consumer Electronics Show (CES) and the Electric Daisy Carnival (EDC), attracting visitors from all over. Plus, there’s a thriving local theater and arts scene, with many venues offering a variety of performances and cultural events.
2. Con: Extreme weather
Las Vegas experiences extreme weather conditions, particularly during the summer months when temperatures can soar above 110°F. The intense heat can be uncomfortable and often limits outdoor activities to early mornings or late evenings. While winters are mild and enjoyable, the summer heat can be a challenge for those not accustomed to such high temperatures. Residents need to be prepared with proper cooling systems and hydration strategies. Additionally, the high temperatures can lead to increased utility bills due to the constant need for air conditioning.
3. Pro: No state income tax
One of the significant financial benefits of living in Las Vegas is the absence of state income tax. Nevada is one of the few states that does not impose a state income tax, which can result in substantial savings for residents. This financial advantage can help offset some of the higher costs associated with living in a major city.
4. Con: High utility costs
Despite the absence of state income tax, residents of Las Vegas often face high utility costs, especially during the summer months when air conditioning usage peaks. Utility costs in Las Vegas are about 9% higher than the national average due to the need for constant cooling. The cost of electricity can be significantly higher, impacting monthly budgets and requiring careful financial planning. During the hottest months, residents may see a substantial increase in their electricity bills, which can strain finances if not managed properly. It’s essential for residents to plan for these higher costs, especially those who are new to the area and might not be accustomed to the extreme summer heat.
5. Pro: Diverse culinary scene
Las Vegas boasts a diverse and world-renowned culinary scene. The city is home to numerous Michelin-starred restaurants and eateries led by celebrity chefs. From high-end gourmet dining on the Strip to a variety of international cuisines in local Las Vegas neighborhoods, there is something to satisfy every palate. The food scene in Las Vegas is a significant draw for food enthusiasts and provides a unique culinary experience.
Some notable restaurants in Las Vegas
Joël Robuchon
Bazaar Meat by José Andrés
Raku
Lotus of Siam
é by José Andrés
Hell’s Kitchen
6. Con: Water scarcity
Water scarcity is a critical issue in Las Vegas, given its desert location. The city relies heavily on the Colorado River for its water supply, and ongoing drought conditions have raised concerns about long-term water availability. Residents need to be mindful of water usage and adhere to conservation measures. This environmental challenge can impact daily life and requires community-wide efforts to address.
7. Pro: Outdoor recreational activities
Despite its desert setting, Las Vegas offers a variety of outdoor recreational activities. The surrounding areas provide opportunities for hiking, rock climbing, and exploring natural wonders. Red Rock Canyon, Lake Mead, and the Valley of Fire State Park are popular destinations for outdoor enthusiasts. These locations offer stunning landscapes and a chance to escape the urban environment.
8. Con: Limited public transportation
While Las Vegas has made efforts to improve its public transportation system, it still lags behind other major cities. The RTC Transit system provides essential bus services, but the routes and schedules may not be convenient for all residents. The city has a transit score of 32, a walk score of 42, and a bike score of 46, indicating that public transportation options are limited, and most daily errands require a car. This can be inconvenient for those who prefer not to drive or do not own a vehicle. Additionally, the layout of the city and the hot weather can make walking and biking challenging for some residents.
9. Pro: Growing job market
Las Vegas has a growing and diverse job market, with opportunities in various sectors such as hospitality, entertainment, technology, and healthcare. The city’s economy is expanding beyond its traditional reliance on tourism and gaming, attracting new businesses and industries. Major employers like MGM Resorts International, Caesars Entertainment, and the University of Nevada, Las Vegas, provide numerous job opportunities. The diversification of the job market enhances economic stability and offers career growth potential.
Top employers in Las Vegas
Las Vegas Sands Corporation
Wynn Resorts
Allegiant Air
Clark County School District
Nevada Power Company (NV Energy)
Southwest Gas Corporation
Sunrise Hospital and Medical Center
10. Con: Transient nature of the city
Las Vegas has a transient nature, with a significant portion of the population moving in and out of the city frequently. This can make it challenging to build long-term relationships and establish a sense of community. The transient lifestyle is often driven by the tourism and entertainment industries, where job turnover can be high. For those seeking stability and long-term connections, this aspect of Las Vegas may be a drawback.
11. Pro: Vibrant arts and culture scene
Beyond the glitz and glamour of the Strip, Las Vegas has a vibrant arts and culture scene. The city is home to several museums, galleries, and performing arts venues. The Smith Center for the Performing Arts hosts a variety of cultural events, including Broadway shows, concerts, and ballet performances. Additionally, the Las Vegas Arts District offers a hub for local artists and creative expression. This cultural diversity enriches the community and provides ample opportunities for artistic exploration.
12. Con: High cost of living
While some aspects of living in the city are affordable, the overall cost of living in Las Vegas is relatively high, about 6% more than the national average. Housing costs have been rising, with the median sale price for a home in Las Vegas around $450,000 and average rent for a one-bedroom apartment in Las Vegas about $1,330 per month. Additionally, costs for dining out, entertainment, and other lifestyle expenses can add up quickly. Residents need to budget carefully to manage these costs effectively. This higher cost of living can be a significant consideration for those moving to the area, particularly when balancing it against the benefits of the city’s vibrant lifestyle and job opportunities.
13. Pro: Iconic landmarks
Living in Las Vegas means having iconic landmarks and attractions at your doorstep. From the world-famous Las Vegas Strip to the historic Fremont Street Experience, these sites contribute to the city’s unique character and charm.
Famous landmarks in Las Vegas
The Bellagio Fountains
The Neon Museum
The Mob Museum
Hoover Dam (nearby)
Red Rock Canyon National Conservation Area
14. Pro: Sense of community in neighborhoods
Despite its transient nature, Las Vegas has neighborhoods with a strong sense of community. Areas like Summerlin, Henderson, and Centennial Hills offer suburban living with community events, parks, and schools. These neighborhoods provide a contrast to the bustling Strip, offering residents a more relaxed and friendly environment. The local community centers and neighborhood associations help foster connections and engagement among residents.
Thinking of making Louisiana your new home? The Pelican State provides beautiful natural landscapes like the bayous and swamps and vibrant communities with a strong sense of tradition. Whether you’re browsing homes for sale in New Orleans, considering renting in Baton Rouge, or exploring houses for rent in Lafayette, you’ll find a state brimming with Cajun and Creole cuisine, lively music scenes, and festive celebrations like Mardi Gras.
Louisiana at a glance
From the enchanting swamps and bayous to the scenic beauty of the Mississippi River and the Gulf Coast, Louisiana caters to every adventurer. The largest cities in Louisiana, New Orleans, Baton Rouge, and Shreveport, are full of cultural activities and economic opportunities. Louisiana’s economy thrives on sectors such as energy, petrochemicals, agriculture, and tourism, with major companies like Entergy, CenturyLink, and ExxonMobil having significant operations here.
The state’s cultural scene is rich, featuring world-class museums, renowned music festivals like the New Orleans Jazz & Heritage Festival, and a diverse culinary heritage with Creole and Cajun cuisine. Educational excellence is anchored by institutions like Louisiana State University and Tulane University. Affordable places to live can be found in cities such as Lafayette and Monroe, making Louisiana an enticing choice for those on a budget. Whether you’re exploring the Atchafalaya Basin, hiking in Kisatchie National Forest, or experiencing the lively culture, Louisiana offers an exciting lifestyle.
1. Mardi Gras is just as iconic as you think
Mardi Gras in Louisiana is a vibrant celebration that transforms the streets into a festive wonderland. New Orleans leads the charge with its iconic parades, elaborate floats, and lively music, drawing millions of visitors each year. Each parade is organized by a different “krewe,” with the Krewe of Endymion, Krewe of Bacchus, and Krewe of Zulu being some of the most famous. The parades feature grand floats, often decorated with intricate themes and led by masked riders who throw beads and trinkets to the cheering crowds.
Mardi Gras season officially begins on Twelfth Night (January 6) and culminates on Fat Tuesday, the day before Ash Wednesday. Beyond New Orleans, cities like Baton Rouge and Lafayette also host their own unique Mardi Gras celebrations, each with distinct local flavors and traditions.
Travel tip: Arrive early to secure a good viewing spot for the parades along St. Charles Avenue or in the French Quarter. Don’t forget to bring a bag for collecting beads and a small chair for comfort while waiting.
2. There’s a lot of Cajun & Creole Cuisine
Louisiana is known for its rich fusion of flavors and cultures, primarily influenced by Cajun and Creole traditions. Dishes like gumbo, which blends seafood, sausage, and okra in a savory broth, and jambalaya, a hearty rice dish with meat and vegetables, are must-tries. Don’t forget to explore local favorites like crawfish étouffée and beignets, which are fluffy pastries dusted with powdered sugar. With food festivals and farmers’ markets abundant, you’ll never run out of delicious dining experiences.
Insider scoop: At the famous Commander’s Palace in New Orleans, try the turtle soup and the bread pudding soufflé for a taste of true local flavor.
3. Louisiana has a low cost of living
Louisiana has a low cost of living compared to many other states, making it an attractive option for newcomers. For instance, the median home sale price in cities like Baton Rouge is around $227,750, significantly lower than the national median of $438,441. This affordability makes Baton Rouge one of the best places to live in Louisiana. Additionally, average rental rates in Lafayette hover around $1,200 per month, and with a cost of living that is 13% lower than the national average, everyday expenses, such as groceries and utilities, are generally more affordable, allowing residents to enjoy a higher quality of life without breaking the bank.
If you’re considering moving to Louisiana, you’ll want to weigh the pros and cons of living in the Pelican State to decide if this state is right for you.
4. There are many unique dialects
Louisiana is a melting pot of languages and dialects, reflecting its diverse cultural heritage. You might hear a mix of English, French, and Creole in daily conversations, especially in Acadiana, where Cajun French is still spoken. This linguistic variety adds a unique flavor to interactions and community gatherings.
5. You’ll want to take a swamp tour
Exploring Louisiana’s swamps offers an unforgettable adventure into the state’s unique ecosystems. Guided swamp tours provide opportunities to see alligators lounging in the sun, herons gracefully flying overhead, and the mesmerizing cypress trees draped in Spanish moss. Many tours also delve into the local folklore and history of the bayou, providing insights into the region’s natural beauty and wildlife.
Travel tip: Opt for smaller, eco-friendly tour operators for a more intimate experience. Early morning or late afternoon tours often provide the best wildlife sightings, as animals are more active during these times.
6. The state has significant history
Louisiana’s rich history is integral to its unique cultural identity, shaped by French, Spanish, African, and Native American influences. Exploring historic sites like the French Quarter in New Orleans, with its stunning 18th-century architecture and landmarks such as Jackson Square and St. Louis Cathedral, provides a glimpse into the colonial past. The historic homes along the Mississippi River, like Oak Alley, offer tours that delve into the complexities of the pre-Civil War era. Understanding this history enriches the experience of living in Louisiana, providing context for its diverse communities, cuisine, and lively festivals
7. You’ll experience live music everywhere
Music is the heartbeat of Louisiana, especially in cities like New Orleans and Lafayette. Jazz, blues, zydeco, and Cajun tunes fill the air, creating a lively atmosphere that invites participation. Local bars, street corners, and festivals are always alive with performances, and you might even catch an impromptu jam session at a neighborhood cafe. Joining in on the music scene allows you to experience the state’s vibrant culture firsthand.
Insider scoop: Check out local music calendars or apps like Songkick to discover lesser-known artists and impromptu jam sessions. Look for spots like Frenchmen Street in New Orleans, where you can catch multiple live shows in one night.
8. Be prepared for the hurricane season
If you’re moving to Louisiana, gearing up for hurricane season is a must. From June to November, tropical storms and hurricanes can sweep through the region, bringing high winds and heavy rains. Embrace your inner Louisianan by creating a rock-solid emergency plan: know your local evacuation routes by heart, stock up on essentials like water, non-perishable foods, and batteries, and keep important documents in a waterproof container. Stay connected by downloading local weather apps and tuning into trusted sources like the National Hurricane Center.
9. Louisiana has many festivals each year
Louisiana hosts over 400 festivals each year, showcasing its vibrant culture and traditions. Highlights include the French Quarter Festival, where local musicians perform across the historic streets, and the Louisiana Seafood Festival, which celebrates the state’s rich seafood heritage with dishes like shrimp po’boys and fried catfish. Many festivals also feature stunning art displays from local artists and craftspeople, creating a true feast for the senses. Don’t miss the Bayou Country Superfest, where top country music stars perform, or the Mardi Gras celebrations, filled with colorful parades and dazzling floats.
10. Boudin is a must in Louisiana
Boudin is a beloved sausage that showcases the unique flavors of Louisiana. Made from pork, rice, and spices, it’s a perfect snack or meal on the go. You can find boudin at local markets, roadside stands, and specialty shops, each with its own recipe and twist. Sampling this local delicacy is a rite of passage for anyone wanting to embrace the culinary culture of Louisiana.
11. Sport games are a big deal here
College football, especially LSU Tigers games, draws passionate fans clad in purple and gold, creating a sea of vibrant color at Tiger Stadium in Baton Rouge, one of the loudest venues in college football. The atmosphere is electric, with the iconic “Tiger Band” performing and fans gathering for lively tailgating parties featuring mouthwatering dishes like jambalaya, gumbo, and BBQ ribs. Meanwhile, the New Orleans Saints boast a dedicated following in the NFL, with the Superdome buzzing with energy during home games, where the “Who Dat” chant resonates through the crowd.
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.
Raleigh, the capital of North Carolina, is known for its thriving tech industry, vibrant cultural scene, and beautiful green spaces. With a mix of Southern charm and modern amenities, Raleigh attracts people from all over the country. However, living in this bustling city comes with its own set of advantages and challenges.
Whether you’re looking at a cozy apartment in Five Points or a sleek apartment in Downtown Raleigh, this article will help you weigh the pros and cons of living in Raleigh.
Fast facts about living in Raleigh
Population: Approximately 470,000 residents
Average rent: $1,368 per month for a one-bedroom apartment
Median home sale price: $441,000
Public transit: GoRaleigh provides bus services throughout the city
Public parks: Over 200 parks and green spaces for recreation and relaxation
Annual tourists: Approximately 16 million visitors each year
Restaurants: Over 1,300, offering a variety of cuisines from around the world
1. Pro: Thriving tech industry
Raleigh is part of the Research Triangle, one of the largest research parks in the world, which includes nearby Durham and Chapel Hill. This area is a hub for technology, research, and innovation, attracting major companies like IBM, Cisco, and SAS. The presence of these tech giants, along with numerous startups, provides ample job opportunities and drives economic growth in the region.
2. Con: Mixed cost of living
Overall, the cost of living in Raleigh is about 2% less than the national average, making it relatively affordable. However, there are variations within different expense categories. Housing costs are about 4% less than the national average, with the average rent for a one-bedroom apartment in Raleigh around $1,368 per month and a median home sale price of $441,000. Utilities are approximately 3% less than the national average, providing some relief in monthly expenses. Groceries are about 1% less than the national average, which can help reduce the overall cost of living. However, health care costs are significantly higher, about 12% more than the national average, which can be a notable expense for residents.
3. Pro: Excellent education
Raleigh is home to several esteemed educational institutions, including North Carolina State University (NCSU), Meredith College, and Shaw University. These institutions offer a wide range of programs and contribute to the city’s vibrant academic atmosphere. Additionally, there are various public and charter schools providing diverse educational options, including top-rated schools like Raleigh Charter High School and Wake Early College of Health and Sciences.
Raleigh also boasts a number of research centers and specialized training programs, fostering innovation and continuous learning within the community. This strong emphasis on education not only benefits students but also supports the city’s growing economy and attracts a highly skilled workforce.
4. Con: Limited nightlife options
While Raleigh offers a variety of dining and entertainment options, its nightlife scene is not as vibrant as larger cities like New York or Los Angeles. The city has a more laid-back atmosphere, with fewer late-night venues and entertainment options. Residents seeking a bustling nightlife might find the options limited, though there are still plenty of local bars, breweries, and restaurants to enjoy. For those who crave more excitement, cities like Durham and Chapel Hill offer additional nightlife options but still require a short drive.
5. Pro: Green spaces and parks
Raleigh boasts numerous parks and green spaces where residents can enjoy outdoor activities. The city is home to expansive areas like Umstead State Park and Pullen Park, providing a wide range of recreational opportunities, including hiking, biking, picnicking, and more. The city’s commitment to maintaining and expanding its green spaces contributes to a high quality of life for its residents.
Parks and trails in Raleigh
William B. Umstead State Park
Pullen Park
Dorothea Dix Park
Lake Johnson Park
Neuse River Trail
Shelley Lake Park
6. Con: Limited public transportation
While Raleigh has made improvements to its public transportation system, it still lags behind other major cities. The GoRaleigh bus system provides essential services, but the routes and schedules may not be convenient for all residents. The city has a transit score of 29, a walk score of 31, and a bike score of 39. This means that public transportation options are limited, and most daily errands require a car. This limitation can be inconvenient for those who prefer not to drive or do not own a vehicle.
7. Pro: Vibrant arts and culture scene
Raleigh offers a thriving arts and culture scene, making it an appealing destination for those who appreciate creativity and the arts. The city is home to numerous galleries, theaters, and cultural institutions, such as the North Carolina Museum of Art and the Duke Energy Center for the Performing Arts. Residents can enjoy a wide range of cultural events, including art exhibitions, live performances, and music festivals throughout the year. This vibrant cultural environment not only enriches the community but also provides ample opportunities for personal enrichment and entertainment.
8. Con: Weather extremes
Raleigh experiences all four seasons, which can mean hot, humid summers and cold, occasionally snowy winters. While some residents appreciate the variety, others may find the weather extremes challenging to manage. Summer heat waves can be uncomfortable, and winter storms can disrupt daily life, affecting transportation and causing school and work closures. The transition seasons, spring and fall, can also be unpredictable, with sudden changes in temperature and weather conditions.
9. Pro: Strong sense of community
Raleigh is known for its strong sense of community, with numerous events and festivals that bring residents together. The city hosts a variety of cultural and social events, such as the Raleigh Arts Festival and the International Festival of Raleigh, which celebrate the city’s diversity and promote community engagement. Neighborhoods in Raleigh often have active community associations and local initiatives that foster a sense of belonging and camaraderie among residents.
Neighborhoods in Raleigh
Downtown Raleigh
North Hills
Glenwood South
Cameron Village
Brier Creek
10. Con: High humidity
Raleigh’s climate, while providing beautiful weather, also means high humidity levels. The humidity can be uncomfortable, especially during the summer months when temperatures can soar. High humidity can make outdoor activities less enjoyable and lead to increased reliance on air conditioning, which can raise energy costs. Even with air conditioning as a standard feature in most homes and buildings, the persistent humidity can still be a challenge, making it harder to stay comfortable and maintain certain household items like electronics and wooden furniture.
11. Pro: Diverse food scene
Raleigh’s food scene is diverse and innovative, with a wide range of restaurants offering various cuisines. From Southern comfort food to international delights, the city has something to offer every palate. The downtown area and surrounding neighborhoods are known for their trendy eateries, food trucks, and craft breweries. Additionally, Raleigh hosts several food festivals, such as the Downtown Raleigh Food Truck Rodeo and the International Food Festival, showcasing the city’s culinary talent and diversity.
12. Con: High taxes
While North Carolina has a relatively moderate tax rate, Raleigh’s local taxes and cost of living can still be a financial consideration for residents. Property taxes in Wake County are higher than in some other parts of the state, impacting homeowners significantly. The combined state and local sales tax rate is 7.25%, which can add to the overall cost of living. Residents need to consider these factors when planning their budgets, as they can affect everything from housing affordability to daily expenses.
13. Pro: Iconic landmarks
Living in Raleigh means having iconic landmarks and cultural institutions at your doorstep. From the historic North Carolina State Capitol to the contemporary North Carolina Museum of Art, these sites contribute to the city’s unique character and charm. These landmarks offer a wealth of educational opportunities, recreational activities, and aesthetic enjoyment, making the city a delightful place to live and explore.