Career (Blog or Resources)

Do Recession-Proof Jobs Exist?

Posted on May 7, 2020

It’s probably safe to say that you have heard the economy is in a recession or headed towards one due to the COVID-19 global pandemic. Hearing about a recession may cause you concern about your job security, but you’re not alone. In these uncertain times, it can feel like no job is truly safe. But, in fact, recession-proof jobs do exist. If you are in college and exploring career paths or if you’re looking to change jobs, keep reading to find out about careers that may lessen your worries during a recession. And if you find yourself currently in a position that may be affected by a recession, there are some actions you can take to make your job a little more recession-proof.

What Is a Recession?

A recession is defined by the National Bureau of Economic Research as a significant decline in economic activity lasting more than a few months. The decline in economic activity is seen in things such as income, employment statistics, and retail sales. Unemployment can increase during a recession because companies are earning less money due to less demand and are unable to pay employees. However, there are some jobs that are considered recession-proof, meaning you are less likely to lose certain jobs during a recession.

Recession-Proof Jobs

If you are trying to decide what career path is right for you and want to find one that is more likely to survive a recession, take a closer look at jobs such as these below. Here are some of the best jobs during a recession:

Healthcare Industry – Most jobs in the healthcare industry are safe during a recession because people will always need medical attention regardless of how the economy is faring. In addition, these jobs can be done in many different settings that allow for more opportunities, such as hospitals and doctor offices. The jobs most in demand are registered nurses, physical therapists, and pharmacists. The only healthcare jobs that may see some decline in a recession are those involved with elective procedures, since people may put those off until more prosperous times.
Teachers and professors – Children will always need education and teachers will always be needed. Whether elementary, middle or high school, teacher positions will need to be filled. Becoming a professor is also a solid career path, although it will require an advanced degree.
Law Enforcement – This can include officers, detectives, and crime scene technicians. These jobs are usually protected from layoffs because the need for public safety is not dependent on the economy.
Public utility services – The jobs in this sector are in electric companies, trash services, recycling, and water services. These services are considered essential and will continue in a down economy.
Funeral director – A funeral director is involved in planning all aspects of a funeral. While it may sound morbid, death is inevitable and, therefore, this is an industry that will not suffer as much economic impact as others.
Firefighters – Similar to law enforcement, firefighters are an essential part of maintaining public safety. Fire inspectors and fire investigators are similar to this job.
Judicial workers – In a recession, the court system will still be needed. Whether civil or criminal cases, jobs in the judicial system will continue. This can include judges, clerks, bailiffs, bail bond agencies, prosecutors and public defenders.

Recession-Proof Your Current Job

Unfortunately, some sectors of employment are more susceptible to job losses during a recession, such as jobs in the construction field, travel industry, auto sales, and retail sector. If you are in a job that is not considered recession-proof here are some ways to increase your chance of not receiving a layoff notice.

One important thing we’d like to note: If you have been laid off, it’s extremely likely that it had nothing to do with your talent or likeability. Unfortunately, sometimes companies have to make difficult decisions to layoff people that they normally wouldn’t. These are just merely suggestions for ways you can rock at your job:

Learn new skills – Learning new programs and strategies in your field may help you move up the ranks in your company and show initiative to your bosses. This can translate to being a more valuable contributor to your employer, and thus, more likely to survive a layoff.
Be a team player – A likable co-worker who helps contribute to projects would be an asset to the company rather than someone who just does the minimum required for their position. Become a team player by taking on more responsibilities even if they don’t fit within your position.
Have a positive attitude – When managers have to decide who they have to lay-off they will be more likely to retain the employee who has a positive attitude about their job rather than an employee with a pessimistic outlook who makes the workplace a negative environment.
Network – Build relationships with colleagues in your field. This will help if a layoff is inevitable at your company and you find yourself looking for a new job.

If you are in a job you love but it’s not considered recession-proof, the best thing you can do is take control of your finances. Two things that will make the biggest impact are: creating an emergency fund and reducing your finances. Start saving for an emergency fund and aim to build at least 3-6 months of living expenses. If you are trying to reduce your expenses, one simple option that could save you hundreds of dollars a month is student loan refinancing. Check out the student loan refinancing calculator to see if this may be a good option for you.*

A recession is out of your control, however, preparing for it in advance can save you a lot of worries. Whether you choose a new career path, try to recession-proof your current job, or just bulk up your savings, all of these are great options for preparing yourself for a less stressful future.

*Subject to credit approval. Terms and conditions apply.

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8 Legitimate Work-From-Home Jobs

Posted on April 14, 2020April 22, 2020

With the recent happenings surrounding the COVID-19 pandemic, many of us are either working from home or staying at home for a greater portion of our time due to stay-at-home orders or to practice social distancing. Unfortunately, some of us may be out of a job altogether. Spending this unusual amount of time at home may have you starting to wonder whether you’d like to actually work from home full-time or part-time.

By Caroline Farhat

Working from home comes with some great benefits, but it may not be for everyone. We’ve outlined some of the benefits and things you should know before making the leap. Sold on getting a work-from-home job? Keep reading to find out how you can snag one that you’ll love.

Is Working from Home Right for You?

Before you start looking at work-from-home jobs, you need to decide if skipping office life and working from home is right for you. You may like working from home if:

You are self-motivated – When you are working from home it’s up to you to get the work done in a timely manner. Sure, you may have the occasional video conference meeting or phone call, but in general, there is nobody looking over your shoulder to check that you are completing the work.
You can stay focused – Of course, office life comes with distractions. We all know that one coworker that turns a 5-minute coffee break into a 20 minute one. But at home, there may be even more time-sucking distractions. Pets, household chores, and your Netflix account may be some of the distractions you would have to contend with and overcome to stay focused on work.
Working alone doesn’t bother you – Just as co-workers can serve as a distraction, they can also be built-in friendships. Would the camaraderie be something you miss or do you work better alone? If working alone sounds a bit lonely, working from home may not be the right fit for you.
You are organized – Working from home requires you to stay on top of deadlines and work tasks in a non-traditional office environment. If you prefer being managed closely on a day-to-day basis, working from home may have a learning curve.

The Benefits of Working from Home

No commute – The average American spends a little over four hours per week commuting to work. In many major cities across the country, that number is much higher. Still, even four hours is a sizable chunk of time and can be better spent on yourself or with your family.
Office attire is more relaxed – Although it may help your productivity to change out of your pajamas, your attire can likely be more relaxed than if you were in an office. If you have video conferencing calls, just be sure to dress appropriately.
Save money – By working from home, you may be less tempted to go out for lunch or stop for daily morning coffee. Depending on how often you go out, that could mean over $200 in savings each month. Plus, you will also save on your commuting costs, whether that is gas or public transportation.

Legitimate Work-From-Home Jobs

Ready to start your work-from-home job hunt? Here are some of the best work-from-home jobs to consider:

1. Website or App Tester

Although this job may not provide a full-time income, it’s a great way to earn extra money on the side. For these types of jobs, you will be testing a website or application and providing feedback on it. For example, you might be required to complete certain tasks on the site. One company that has these types of jobs is UserTesting.

2. Virtual Call Centers

With call center jobs, you may be considered an employee or contractor depending on the company. Most will require certain equipment, like a dedicated phone line and minimum internet speed. A call center job will require you to interact with customers by phone or possibly online chat to help fix problems they may have or answer questions. Some companies that often have openings for virtual call center jobs are: Alorica@Home and Liveops.

3. Freelance Writing

As the title suggests, freelance writing is a contract position where you will be writing for all sorts of different mediums, from blogs to magazines. If you like writing, freelance work can be a great job for you and has unlimited income potential. A great resource to find freelance writing opportunities is FreelanceWriting.

4. Teach English Online

Have a knack for teaching kids? If you have a patient and upbeat personality, you may enjoy teaching English online. Some companies do not require teaching experience but do require a college degree. The major ones to apply to are: VIPKID and Qkids.

5. Amazon

The retail giant has a vast array of remote jobs from Human Resources to Software Development. Some positions require you to live in certain cities, so read the requirements closely. Check out the listings to see if any would be a good fit.

6. Data Entry

These types of jobs can be good for beginners, although the pay is not high. Data entry can include transcribing audio files or entering data into a system. One site with different opportunities is Clickworker.

7. Insurance

The industry has a number of remote jobs that would make great careers, including sales and underwriting. Two major health companies offering work from home positions include Humana and Aetna.

8. Virtual Assistant

Are you organized, a team player and like assisting others? Being a virtual assistant may be a great fit for you. A VA can help bloggers with their sites or help companies in an assistant role. A great place to look for VA work is on Boldly. With Boldly, you are considered an employee of theirs and do work for companies looking for assistants.

If you aren’t sure what industry you would be interested in working for there are some resources that provide legitimate work from home job listings. Check out KellyServices or Indeed to see all the work from home positions.

Tip: Remember there are work-from-home job scams. Be aware of any “jobs” that require you to buy anything or that sound too good to be true.

If you are dealing with student loan debt but don’t think working from home is right for you, there are other ways you can tackle your student debt. Student loan refinancing is one great option because it can help you save money on your monthly payment, as well as the overall loan amount. Curious how much you can save? Use our student loan refinancing calculator to find out how student loan refinancing can help in your unique situation.*

*Subject to credit approval. Terms and conditions apply.

How to Appropriately Ask for a Raise

Posted on March 23, 2020April 21, 2020

So you’ve been taking on more responsibility at work, your boss says you’re a real asset to the company, but your salary hasn’t changed in a few years. If this describes your current work situation, it might be time to ask for a raise.

By Caroline Farhat

According to PayScale’s “Raise Anatomy” report, only 37% of workers have asked for a raise. Of those that did ask, 70% received some sort of increase in compensation. Those are pretty good odds so if you’re excelling at your job, you should ask! The average raise in 2019 was 3%, according to the 2020 Compensation Best Practices Report. This means that if you are earning $40,000, your raise would increase your income by $1,200 per year. The amount of a raise depends on the sector of work, location, and demand for the position. Typically, jobs in the private sector usually receive higher raises than jobs in the government. As a best practice, you should usually wait to request a raise after you have worked for the company for at least one year. Additionally, in most cases, you should not ask for a raise more than once a year.

If you feel it is time to ask for a raise, here are some tips on how to appropriately request one.

Prepare for a Meeting

When you are ready to ask for a raise, request a meeting with your boss and let them know you’d like to discuss your salary.

1. Plan your request at the right time

When you want to ask for a raise, pay attention to the timing of the meeting with your boss.

An appropriate time for a meeting would be:

After you successfully completed a big project that brought value to your company
During a performance review meeting when you have exceeded expectations. Performance review meetings are a typical time when companies award raises. Being prepared to ask for a raise during this time could allow you to negotiate for more than the planned raise.

Times to avoid a meeting:

During a busy season of work when your boss will not be able to focus on your request
When you are behind on your work. If you are not able to perform your current workload, it will be hard to justify a raise to your boss.

2. Prepare talking points

Go into the meeting prepared to advocate for yourself. Although you don’t have to memorize a speech, it’s good to be prepared with the following information:

Specific examples of accomplishments you have achieved at work recently. This could be anything from securing a big client to implementing an idea that brings in extra revenue for your company.
How you have exceeded expectations for your position.
Additional responsibilities you have undertaken. If you have taken on more responsibilities by taking initiative, be sure to highlight those.
The value you will continue to bring to the company in the future and examples of how this will be accomplished.

3. Do your research

It’s important to know that the salary you are requesting is realistic for your position and your location. A great resource is Glassdoor. You can compare salaries for your sector or receive a personalized salary estimate based on your market and position.

4. Practice, practice, practice

Asking for a raise can be a nerve-wracking conversation. By preparing and practicing before your meeting, you can walk in confidently and armed with data to back up your request. In addition to practicing your talking points, you will want to be ready for any questions or negotiations that may arise. While it’s good to have a specific salary in mind, you should also be open to other numbers or benefits that your boss may offer. For example, the company may offer you work from home or extra vacation time in place of a salary increase.

In the Meeting

You’ve requested a timely meeting, prepared extensively, and now it’s go-time. Once you’re in the meeting here’s what you should focus on:

1. Your Demeanor

Pay attention to your tone and body language when speaking. You want to appear confident in yourself and your abilities. Show a positive attitude about the value you bring to the company, but do not appear arrogant. If you get questioned about why you deserve a raise, keep your cool and answer with the talking points you prepared.

2. Communicate Your Accomplishments

Instead of just rattling off a laundry list of accomplishments, focus on a few incredible examples and, if possible, bring proof of your work. Here are a few ideas of what you can present in the meeting:

Two-three examples of big projects you accomplished
Work you did that was beyond the scope of your job
Specific examples of when you took the lead and were successful
Examples of work brought that brought monetary value to the company
Ideas for your future at the company. Companies value loyal workers so be sure to point out how you have demonstrated loyalty and your desire to remain with the company.

3. Explain Why You’ve Earned It

Be sure to avoid talking about why you need the extra money and instead focus on how you have earned a raise. For example, if you are in sales, instead of saying you need the money because of increased living costs, say you have earned this raise because you are the most successful sales associate, have brought in $100,000 in revenue, and receive great reviews.

4. Bring a Specific Number

It’s best to have a specific number you are requesting, according to a study by Columbia Business School, instead of a range. For example, you want to request $55,000 as opposed to saying $52,000 to $57,000. Provide the reasoning for how you arrived at that number and, if applicable, give examples of how it is in line for the type of work you do.

Bottom Line

If you have been in your role for over a year and are killing it at your job, you should seriously consider asking for a raise. But before you do so, preparation is absolutely critical. Follow the steps above and you’ll be in a great place to have this discussion with your boss. Good luck!

10 Cities With Best Job Markets

Posted on February 11, 2020April 21, 2020

Once you graduate and start looking for a job, you may realize that your hometown isn’t the best place for your career. You may think about relocating to a new state to get the right job, but it’s a huge decision.

By Kat Tretina

Kat Tretina is a freelance writer based in Orlando, Florida. Her work has been featured in publications like The Huffington Post, Entrepreneur, and more. She is focused on helping people pay down their debt and boost their income.

Where you live can have a big impact on your income and quality of life. Depending on your field, some cities can be better for your career than others.

To help you narrow down your search, we looked at Indeed’s Best Cities survey to identify the top 10 cities for job seekers.

10 Cities with Booming Job Markets

In its survey, Indeed looked for cities with low rates of unemployment, a prevalence of highly-rated companies, high average salaries, and low competition for jobs. With that research in mind, these are the 10 cities it identified with the best job markets:

10. Salt Lake City, UT

Utah’s economy is one of the fastest-growing in the country, and that’s largely due to Salt Lake City’s rapid development. While the U.S. economy grew as a whole by about 3%, Utah’s economy grew by over 4%.

Salt Lake City has become a hub of technology, with many tech and bioengineering companies relocating their operations to the area. Compared to other areas like San Francisco, Salt Lake City’s real estate market is relatively inexpensive, making it attractive to both companies and workers.

The unemployment rate is 3.1%. On average, workers in Salt Lake City earn $66,000 per year, which is significantly higher than the national mean wage for all occupations.

9. Washington, D.C.

Known for its politicians and lawmakers, the Washington D.C. area is also the strongest economy in the entire United States. It’s home to over 400 international associations and 1,000 international companies, including 15 Fortune 500 companies, making it a prime spot for job seekers.

Total non-farm employment for the area grew by 52,300 jobs — or 1.6% — over the course of a year. That number outpaces the national employment growth rate.

The average salary in Washington D.C. is $75,000 per year — $24,000 more than the national mean wage.

8. Oklahoma City, OK

The economy in Oklahoma City is rapidly changing. In the past, industries like mining and manufacturing were the leading employers in the area. Now, transportation, construction, and leisure and hospitality have taken over and dominate the job market.

The unemployment rate is lower than the national average, and overall job growth is at 2.5% with 15,900 jobs added.

In Oklahoma City, the average salary is $58,000. While that’s lower than the salaries of some cities on this list, Oklahoma City has a much lower cost of living, so your income will go further.

7. Milwaukee, WI

Like Oklahoma City, Milwaukee’s economy has seen significant changes in recent years. Industries like mining and manufacturing declined, while leisure and hospitality is a booming field.

In the area, job growth increased by 1.6%, and unemployment reached 3.2%, which is slightly below the national average. According to PayScale, the average salary is $63,000. However, Milwaukee has a lower cost of living than other cities, so your income is even more valuable.

6. Minneapolis-St. Paul, MN

The Minneapolis-St. Paul area has lower-than-average unemployment and is seeing significant growth in a number of industries. The biggest industries include trade, transportation, and utilities, education and health services, and professional and business services.

The average salary in Minneapolis is $69,000, far higher than the national mean wage for all occupations.

5. Nashville, TN

The city known for its culture and music is also one of the fastest-growing economies in the country. It has more than 1.9 million residents and over 40,000 businesses in it. The biggest job opportunities are for workers in the service industry, including restaurants, hotels, and skilled construction workers.

The unemployment rate in the city is just 2.7%, which is far lower than the national average. The biggest employers are the Vanderbilt University Medical Center, Nissa North America, and HCA Healthcare, Inc. However, Amazon recently announced that it would build a center in Nashville, bringing 5,000 jobs to the area. This development would dramatically change the city’s employment landscape.

The average salary in Nashville is $61,000, but the city has a lower-than-average cost of living, making your salary worth even more.

4. Birmingham, AL

Birmingham boasts an extremely low unemployment rate at just 2.2%. And according to the Bureau of Labor Statistics, the number of total non-farm jobs grew by 1.9% in 2019.

Healthcare and banking are two of the biggest industries in the city, with major employers like the University of Alabama at Birmingham, BellSouth, and the Baptist Health System hiring workers.

The average salary for Birmingham workers is $59,000. While that’s relatively low for a city on this list, Birmingham’s cost of living is much lower than other cities, making the salary more valuable.

3. Boston, MA

Workers in historic Boston can command high salaries. The average salary for workers is $76,000.

The city also has unprecedented job growth. According to a GlassDoor report, Boston’s job listings grew by 8.4%, the highest in the country. The biggest employers are primarily in three industries: health care and social assistance, finance and insurance, and educational services. The largest employers are Massachusetts General Hospital, Brigham and Women’s Hospital, and Boston University.

Boston also has an extremely low unemployment rate. At just 2.1%, it’s significantly lower than the national average.

2. San Francisco, CA

San Francisco is a hotly-desired area for job seekers. With an incredibly low unemployment rate — it’s just 1.8% — and big-name employers calling the area home, it’s easy to see the appeal.

The job growth rate is 2.4%, outpacing the national average. The biggest employers in the area are Advent Software, California Pacific Medical Center, and Charles Schwab.

The average salary in San Francisco is a whopping $95,000. However, the high income is tempered by the fact that San Francisco has a higher-than-average cost of living, cutting into how far your salary can go.

1. San Jose, CA

At $99,000, San Jose has the highest average income of any city on this list. Like San Francisco, its cost of living is higher than normal, but that salary is still impressive.

San Jose’s unemployment rate is just 2.2%, and non-farm jobs have grown by 2.9%. The area is home to hundreds of technology and research firms, including big names like Apple, Lockheed Martin, and the Stanford School of Medicine.

Maximizing Your Income

Deciding to relocate can have a big impact on your income and, consequently, your student loan repayment. If you do move to another state for a great job and secure a pay increase, you’re a prime candidate for student loan refinancing and you can get a low interest rate on your loan. You can get a no-obligation quote from ELFI without affecting your credit score.*

*Subject to credit approval. Terms and conditions apply.

How to Use a Pay Raise Responsibly

Posted on January 22, 2020April 21, 2020

By Tracey Suhr

Getting called into the boss’ office for the first time can feel a little reminiscent of getting called into the principal’s office. You immediately start sweating and wondering what you did wrong. But just like the principal’s office, it’s not always bad news. In fact, sometimes it’s the best news of all: you just got a raise. Congrats! Take yourself out for a celebratory dinner and maybe even splurge on brunch this weekend. But come Monday morning, it’s time to get down to business and determine how to use your raise.

You could just enjoy the extra cash coming into your checking account, yes. But, that little financial angel on your shoulder might also nag you about being smarter with that money. Unfortunately, most high school and college classes don’t teach us how to be responsible with our money. We learn all sorts of questionably-practical information like the Pythagorean Theorem but not how to file taxes or how to use a raise responsibly.

To cover that gap in information, we’re here with three actually practical suggestions to use that raise in a way both your principal and your boss would be proud of.

3 Practical Tips to Use a Raise Responsibly

1. Boost Your Retirement Savings

If your employer has a 401(k) plan, you should already be allocating 3–5% of each paycheck toward a retirement account, especially if your employer offers a 401(k) match. This means they’ll contribute as much to your savings as you do, up to a certain amount. Many employers match contributions up to 6% of your salary, and this is, literally, free money. If you contribute 3% of your $50,000 salary, that’s $1,500 a year from you and $1,500 a year from your employer for retirement savings.

When you get a raise, you should adjust your paycheck to dedicate a portion or the full amount of that raise to your 401(k) contributions. This is an easy way to save more without much thought or effort needed. If you do this right away, you don’t get used to the extra money, and you just continue living and paying bills as you did before the raise.

If you’re young, this type of contribution can be especially rewarding because of a concept called compounding interest. This means the interest on your investment earns interest, not just the principal (or original) balance. If you invest $1,500 with a 10% interest rate, your balance would be $3,890 in 10 years. With a simple interest rate that only builds on the initial investment amount, your 10-year balance would be only $3,000.

2. Pay Off Debts

Another savvy way to use your raise is to allocate a portion or the full amount to your debts. This can be credit card debt, student loan debt, or even repaying a personal loan from mom and dad. But debt isn’t necessarily a bad thing. Certain debts like student loans carry low interest rates so when you consider how to use your raise, consider that other accounts or investments with higher interest rates might make or save you more in the long run. For example, if your student loan has an interest rate of just 8%, it makes more sense to pay off a credit card with a 24.5% interest rate or invest in a stock with a 10% return rate.

3. Allocate the Rest to An Emergency Fund

We alluded to this before, but you don’t have to put all your extra cash in one place. If you get a 5% raise, you can direct 4% toward your student loans and put even 1% in an emergency fund. You should build the emergency fund until you have at least six months of your salary in the account to help you cover bills and general living expenses in case you find yourself suddenly out of work. If six months seems unattainable, aim for at least one or two months to give you four to eight weeks to find work. This emergency fund can also come in handy if unexpected medical bills or car repairs pop up.

If you haven’t been lucky enough to get a raise from your employer, or if you’re looking to boost your savings even more, you can give yourself a raise by refinancing student loans.

If you meet the eligibility requirements, student loan refinancing through companies like ELFI can get you a lower interest rate*, which means you could pay less each month and, subsequently, less over the life of the loan. Use the difference between your previous and current monthly payments as a raise. Then allocate that money to your retirement funds and toward paying off debts. ELFI customers reported saving an average of $272 every month and should see an average of $13,940 in total savings after refinancing student loans with Education Loan Finance.¹ That’s a 7.4% raise, which is far above the predicted average 2020 cost-of-living raise of 1.6%. You can refinance both private and federal student loans.

Deciding how to use a raise responsibility is a big decision. Hopefully, with these tips, you can find ways to use those funds in a way that will give you even more play money in the future. The average raise is 4.6%, and with a little knowledge and discipline, you can turn 4.6% into thousands of dollars if you make the right choices on how to use a raise responsibly.

*Subject to credit approval. Terms and conditions apply.

¹Average savings calculations are based on information provided by SouthEast Bank/ Education Loan Finance customers who refinanced their student loans between 2/7/2020 and 2/21/2020. While these amounts represent reported average amounts saved, actual amounts saved will vary depending upon a number of factors.

Minternship: A New Trend for Middle-Aged Adults

Posted on January 20, 2020April 21, 2020

By Kat Tretina

In decades past, you would enter an industry and then spend your entire working career in the same field, often with the same employer. However, today’s economy is quite different. According to the Bureau of Labor Statistics, people have 12 different jobs over the length of their careers, on average. Not only that, but they also may switch fields during the course of their lives.

In a 2019 Indeed survey, 49 percent of U.S. workers reported a dramatic career change. For example, they may have switched from marketing to engineering, or from teaching to finance.

If you’re feeling burned out in your current field, switching to a new career can help reenergize you. And while switching careers can be challenging, completing a “minternship” — an internship you complete after already starting your career — can help bridge the gap.

What is a Minternship?

In August of 2019, BBC reported on the growing trend of minternships. Many millennial workers, frustrated in their current jobs, are using internships to relaunch their careers or completely switch their professional plans.

You can complete a minternship when you’re already advanced in your career, often when you’re in your 30s, 40s, or 50s. At this age, an internship can help you gain experience and test out a new field. And, it can provide essential networking opportunities so you can land a full-time job once you’re done.

During a minternship, you get hands-on experience in your selected field. You’ll work alongside professionals and learn the ins and outs of the business, completing projects and building your portfolio. Depending on the opportunity, minternships can be part-time or full-time commitments.

Where to Find a Minternship

If a minternship is appealing to you, there are several different ways to find an internship that matches your interests:

Consider returning to school: In some fields, you may need to return to school to complete a certificate program, get an MBA degree, or earn a master’s degree to get a job. Many schools require students to complete internships, and will even help connect you with companies that are hiring.
Search job boards: Some companies post their internships on job boards like Indeed, Monster, and Internships.com. You can search by location, company, or field to find an opportunity that suits your needs.
Connect with your network: If you’re switching careers, consider reaching out to your network on LinkedIn or via email to share your goals and ask for help.
Ask your employer: Some companies — especially large ones — will help facilitate employees’ transitions to a new department. They may provide student loan repayment assistance for employees who go back to school, or they may offer on-the-job training programs. Talk to your human resources department to discuss your options.

How to Prepare for a Minternship

While a minternship can be a great way to gain necessary experience, it may require you to make some lifestyle changes. To take on a minternship and leave your full-time job, you will likely need to adjust to a pay cut. To prepare for that and minimize its impact, follow these steps:

Explore financial aid: If you’re returning to school and completing a minternship, make sure you apply for financial aid, including grants, scholarships, federal student loans, and private student loans*. You may qualify for aid and loans to cover your living expenses so you can focus on your education and budding career.
Create a budget: Make a budget detailing how much money you’ll have coming in while you’re interning and how much you’ll spend each month. Account for regular expenses like rent or mortgage payments, utilities, groceries, and transportation.
Cut expenses: Once your budget is complete, look for areas where you can cut back. Perhaps you can add a roommate while you’re an intern, or you can use public transportation.
Find additional income sources: As an intern, you may need to be creative about how you earn money. While paid internships are possible, unpaid internships are common in certain fields. If that’s the case, consider launching a side hustle or freelancing or consulting in your old field to earn income. Or, you can take on a part-time job.
Refinance student loans: To reduce your student loan payments while you’re interning, you can refinance your student loans*. If you extend your repayment term, you could dramatically lower your monthly payments. You may pay more over time in interest thanks to the longer loan term, but it can be worth it to free up more money in your budget each month.

Changing Careers

If your current job no longer excites or challenges you, it may be time for a change. Completing a minternship gives you an opportunity to learn new skills so you can successfully switch fields. While it will take some sacrifices and time to do, finishing a minternship can prepare you for a successful career change.

Do you need to borrow money to pay for school, or do you want to refinance your existing debt to lower your payments?

ELFI offers private student loans and student loan refinancing loans with competitive interest rates. There are no application fees, origination fees, or prepayment penalties. And, it offers a variety of repayment options and loan terms to suit your needs. You can use ELFI’s Student Loan Refinancing Calculator* to get a rate quote without affecting your credit score.

*Subject to credit approval. Terms and conditions apply.

4 New Year’s Resolutions You Can Actually Keep

Posted on December 31, 2019January 24, 2020

The New Year is upon us – it’s a time for celebration, reflection, and inevitably, for setting resolutions. From achieving financial goals such as repaying student loan debt to health-related goals such as losing weight, we are often pressured to set bold aspirations for the upcoming year. But despite the popularity of setting New Year’s resolutions, they can be fairly difficult to stick with if you set your goals too high or merely set them out of obligation. You can set goals at any time in your life, for any reason, and a new year doesn’t have to always mean a completely new you.

For the sake of taking some of the burden off of the holiday, we’re listing out some New Year’s resolutions you can keep through the year – and feel great about, too.

Start Volunteering

Volunteering isn’t just for students looking to build their resume. Volunteering for causes you believe in is a great way to build friendships, keep busy, and make connections in your community. Volunteer Match is a great place to find opportunities to support charities, nonprofits, organizations and causes near you. Volunteering will leave you feeling empowered and more fulfilled through knowing you’ve made an impact. Consider taking on the New Year with less stress about adding to your own life and shift the focus to giving back!

Stop Procrastinating… As Much

Here’s to making 2020 the year of getting ahead. While it can sometimes be difficult to not put work off until the last minute, make a resolution to spend your free time getting ahead on things – in the end it will leave you with less stress and more free time than you intended on having. Sometimes this requires a shift of mindset, but it is doable. Make 2020 the year you start putting your top priorities first.

Don’t Sweat the Small Stuff

No matter your goals for the upcoming year, understand that great things take time. Focus on making improvements where you can and don’t let minor setbacks take you off track. Life can come at you quickly, so it’s important to keep a level head and understand that most bad things are temporary and will pass. Enter 2020 with a plan for managing stress, taking things one step at a time, and having patience – you may just find that this is the most effective resolution you can set.

Revisit Your Resume

While you may be happy with your current job and plan on sticking with it, a new year is a good reason to give your resume a tune-up. What skills have you acquired over the previous year? How many years of experience do you now have in your field? Taking stock of what you bring can help you gain a new understanding of the salary you deserve, make you feel accomplished for how far you’ve come, or even help you set goals for your professional life in the year to come.

There you go! Now you have four New Year’s resolutions that you can start in 2020 and keep throughout the year. Hopefully these simple, achievable resolutions take some stress off of your holiday and allow you to look into 2020 with a positive and stress-free mindset.

Don’t Sweat the Small Stuff: The Income vs. Savings Approach to Building Wealth

Posted on December 26, 2019March 10, 2020

By Caroline Farhat

We all remember that infamous Australian millionaire who declared that millennials can’t afford to buy homes because they’re wasting all of their money buying avocado toast. Similarly, we’ve probably all lost count of the number of times we’ve heard that we need to cut back on our Starbucks® habit in order to be more financially successful.

While buying avocado toast every morning might not be the wisest choice for your food budget, it’s most likely not going to hold you back from having a healthy bank account either. In fact, if you’re so busy pinching pennies on your daily cappuccino and not looking at how you can save and increase your earnings in bigger areas, you’re probably wasting both your time and money.

Stop Skipping Your Cappuccino and Refinance Instead

1. How refinancing can save you money on your mortgage

According to the Bureau of Labor Statistics, housing is the largest expense for Americans, taking up about 33% of income and $20,091 per year. For homeowners, these figures include the cost of the mortgage, mortgage interest, property taxes and insurance, and expenses for maintenance and repairs.

When you apply and pay for a mortgage, you get an interest rate based on your creditworthiness, the size of your down payment, loan term and type, and economic factors. For example, in 2000, the average mortgage rate was 8.05%. In 2018, the average mortgage rate was 4.54%. As you can see, market conditions can make a big difference in the interest rate you lock-in. The good news is that you have the ability to lower your mortgage rate through refinancing, well after you sign on the dotted line.

Mortgage interest, and its effect on your monthly housing bill, can be easily forgotten — until you start crunching the numbers. Let’s walk through two scenarios — one in which you don’t refinance and one in which you do refinance.

Scenario 1: No refinancing

You buy a $300,000 home and put down 20% ($60,000). You get a mortgage for $240,000 with a 4.5% interest rate. Over the first year, you will have spent $10,720.79 on interest payments alone. Over the entire 30-year mortgage term, you will have spent $197,776.11 in total on interest payments.

Now, let’s see what happens if you refinance your mortgage.

Scenario 2: Refinancing

You buy a $300,000 home and put down 20% ($60,000). While you started with a 4.5% interest rate, shifts in the economy have caused interest rates to drop and you’re now able to refinance to a 3.7% mortgage rate. By doing so, you will save over $12,000 over the life of the loan. To put this in perspective, you’d have to cut back on approximately 3,000 drinks at your favorite coffee joint to save that kind of money.

If you currently have a mortgage, put your numbers into this refinance calculator and see just how much you could save.

2. How to save by refinancing student loans

The Bureau of Labor Statistics also reports that the average American spent $1,417 on education in 2018. If you’re currently reading this blog, you are likely dealing with a much larger number than that. If you have at least $5,000 in student loan debt, student loan refinancing could be extremely beneficial for you.

Similar to mortgages, you can refinance student loans and potentially save thousands of dollars over the lifetime of the loan. ELFI customers reported saving an average of $272 every month and an average of $13,940 in total savings¹.

The first step to saving money on your student loans is to determine whether student loan refinancing* is the best option for you. In a small number of cases, refinancing is not the optimal option. But for most student loan debt holders, it is an excellent way to save money both in the short term and long term. Our student loan refinance calculator allows you to see what you could save in your particular situation. Let’s walk through an example.

Scenario 1: No refinancing

You have $60,000 in student loans with an interest rate of 6.8% and are on a standard repayment plan of 10 years. You pay $690 per month and never consider refinancing. In total, you will pay $82,857 for your initial loan of $60,000. Over $22,000 of that amount will be to interest payments alone.

Scenario 2: Refinance your student loans

You have $60,000 in student loan debt with an interest rate of 6.8% and a monthly payment of $690. You’re eager to optimize your finances and decide to refinance your student loans to a lower interest rate, saving up to $18,000 over the life of the loan. If you refinance into a shorter loan term (such as a 5 or 7-year term), you will save more on interest over the life of the loan. Alternately, you may consider stretching out your terms to lower your monthly payment. This will likely still save you money over the long term, but be sure to crunch the numbers before you make a final decision on your refinancing terms.

Side Hustle or Climb Your Way to Success

Saving on big-ticket items like your housing costs or student loan debt is just one approach to building wealth. After you have taken advantage of all the saving opportunities available to you, it’s time to turn your attention to increasing your earnings. Here are a few ways you can bolster your bank account:

Ask your current employer. If you’re gainfully employed and a top-performer, speak with your boss about the potential for a promotion, raise, or bonus. It’s best to come into these types of conversations with a concrete strategy and multiple examples of positive ways you have impacted the company. Glassdoor has a good guide on how to prepare for this conversation.
Find a new job. Long gone are the days people spend decades at the same company. While “job hopping” may have had a negative connotation in the past, many career experts actually encourage people to switch jobs more frequently in order to get a larger salary and more advanced job title. According to this Fast Company article, “workers who stay with a company longer than two years are said to get paid 50% less.” Money, of course, isn’t everything. But if you’re feeling stagnant both in learning and money, it’s probably time to brush off your resume and start looking for a new position.
Start a side hustle. It’s reported that more than 1 in 4 Americans currently have a side hustle. Beyond the monetary benefits of having a gig outside of your normal 9-to-5, side hustles are also a great way to hone or discover a new passion. Side Hustle Nation has an extensive list of ideas that you can start quickly.

Bottom Line

It pays (literally) to keep your eye on the big stuff. That’s not to say that you shouldn’t ever watch your pennies. Smart spending habits still reign supreme. Just don’t sweat the small stuff so much that you miss out on potentially huge savings.

*Subject to credit approval. Terms and conditions apply.

Yes, You Need a Side Hustle

Posted on December 23, 2019January 24, 2020

Side hustle. It’s a relatively new phrase, but a concept that’s older than you think. It’s simply a second job that helps people make ends meet or earn extra cash to supplement retirement plans, pay off student loan debt, save up to buy a car, etc. You might also hear these jobs referred to as gigs, which constitute the gig economy.

Why the Popularity?

If you wonder why you’re hearing so much about side hustles and the gig economy, it’s because these concepts have exploded in popularity. The U.S. Bureau of Labor Statistics estimates that 55 million people work in the gig economy, which is more than 35% of the country’s workforce. “Side hustlers,” as they’re called, take the form of teachers who write blogs for major companies, stay-at-home moms who moonlight as Uber^® drivers, retirees who tutor school-age children, or even college students who design logos for local businesses.

But side hustles aren’t limited to these more typical archetypes. Even high-earning, highly skilled professions offer ample opportunities for “side hustling”. For example, the gig economy has increasingly penetrated the healthcare industry – doctors and nurses have the ability to work in temporary positions called “locum tenens” to fill staffing needs at healthcare facilities. These positions, often worked during shift downtimes, allow healthcare professionals to have more flexibility and control of their schedule while earning supplemental income. High-end software developers at major technology brands can also benefit from the gig economy, using sites like Upwork to maximize the return on their skills and to explore new projects.

A study on the Gig Economy & The Future of Retirement found that of people with a side hustle, 49% over the age of 55 are using it to save for retirement and 33% are using it to pay off student loan debt. Regardless of the reason, the answer to the question, “Do I need a side hustle?” is almost always, “Yes!”

Check out the following scenario to see just how valuable a side hustle can be. The average student loan debt in America is around $37,000 with a loan term of 10 years and monthly payments of $380 a month. If you made an extra $100 a month ($1,200 a year), you could make three extra payments a year, helping you pay down your student loan debt up to two years early! If you want to see how much you can impact your loan with a side hustle, check out our student loan refinance calculator.

Not only can you bring in extra income with a second gig, you can also diversify how you make that money. In other words, if you lose your full-time job, you will still have a way to pay bills.

Having a side gig is also a way for you to indulge hobbies or hone talents, giving more meaning to your work than perhaps your regular nine-to-five job. If you’re really good with computers, have a knack for photography, possess a knowledge of HVAC systems, or if you’re just really good at IKEA^® assembly directions, you can pick up a side hustle by hawking your services on sites like Thumbtack^®, Nextdoor^®, TaskRabbit^®, or Fiverr^®.

The ideal hustle would allow you to “make money while you sleep.” It sounds hokey, but if you don’t have to trade working hours for money, you can reach your extra income goals to pay off student loan debt without sacrificing your full-time job, family, or social life to do so. These holy grail side hustles take the form of rental properties (that you pay someone else to manage), stock market investing, renting a room or parking space, publishing a book, creating an app, or other similar ideas that require little time to maintain.

One such example is with ELFI’s Referral Program. Simply sign up and create a personalized referral link to share with friends or family. When someone decides to refinance their student loans using your link, you’ll get a $400 referral bonus check and your friend will receive a $100 credit toward the principal balance of an approved Education Loan Finance loan¹. There’s no limit on the number of people you can refer.

Downfalls of Side Hustles

While we started this blog by saying, “Yes, you need a side hustle,” there are several downfalls that you should be aware of. Sure, the hours for side gigs are flexible, but these jobs also don’t come with employer benefits. This means there is no safety net of unemployment claims should you not be able to find enough work. Also, if you don’t have a clear, effective contract and invoicing system set up, payment can get delayed or—even worse—lost in the shuffle. If you don’t work with honest people or established companies, both can run out of money or just simply disappear without paying money owed.

You also need strong personal motivation to work a side hustle. Like most jobs, side hustles rarely just fall profitably into your lap. You should realistically expect to spend a few hours a week promoting yourself and following up on leads. You need to be organized and disciplined to avoid double-booking yourself and to get the work done by agreed-upon deadlines.

You’ll also need to be diligent when it comes to taxes². The money made from your side job will need to be reported on a 1040 Form at tax time. If you fail to report your earnings, you might find yourself subject to tax assessments or penalties. On the plus side of tax time with a side gig, you may be able to deduct certain expenses like car mileage related to your business, necessary equipment, or even subscriptions to business-related organizations.

When it comes to side hustles, there’s no need to quit your day job to earn extra cash. The benefits outweigh the downfalls, and a bonus gig can actually benefit your day job by giving you additional skills and insights or by helping you make connections with clients you wouldn’t otherwise meet. You can work as little or as much as you’d like on your own schedule to pay down debts or save for big expenses.

Curious about how much you need to earn with a side gig to pay down your student loan debt? First, see how much you could save by using our Student Loan Refinance Calculator*. Once you know what your monthly payment could be, you can set a realistic target for your extra income. The Student Loan Refinance Calculator will show you your current vs estimated monthly payment, as well as estimated monthly and lifetime savings.

*Subject to credit approval. Terms and conditions apply.

¹Subject to credit approval. Program requirements apply. Limit one $400 cash bonus per referral. Offer available to those who are above the age of majority in their state of legal residence who refer new customers who refinance their education loans with Education Loan Finance. The new customer will receive a $100 principal reduction on the new loan within 6-8 weeks of loan disbursement. The referring party will be mailed a $400 cash bonus check within 6-8 weeks after both the loan has been disbursed, and the referring party has provided ELFI with a completed IRS form W-9. Taxes are the sole responsibility of each recipient. A new customer is an individual without an existing Education Loan Finance loan account and who has not held an Education Loan Finance loan account within the past 24 months. Additional terms and conditions apply.

²This blog has been prepared for informational purposes only, and does not constitute tax or financial advice. Please consult your tax advisor for guidance on your personal tax situation.

How Student Loan Debt Could Damage Your Career

Posted on November 22, 2019April 22, 2020

You just graduated from college and have student loan debt. No big deal right? Sixty-nine percent of 2019 graduates have student loan debt, so you are absolutely not alone. But did you know your student loan debt could damage your career? Read on to find out how and ways to prevent this from happening.

A majority of college graduates have student loan debt and if you don’t get a handle on yours, it could cause damage to your career before your career even begins. Here are some ways having student loan debt can damage your career:

Your Credit Report

Your credit report shows all of the credit cards you have and their balances and your debt payment history, including your student loans. Missing a payment on your student loans would negatively affect your credit history. Some employers conduct a credit check when you apply for a position. Although they cannot see your actual credit score, they can receive a modified credit report. According to a survey conducted by HR.com, 16% of human resource professionals conduct a credit or financial check on all job candidates and 31% conduct a check on some candidates. Credit checks are most frequently conducted in employment involving security clearance, in positions working with the money of the business or clients, and where confidential information is involved in the job.

Professional Licenses

Student loan default can affect whether you are able to obtain or renew a professional license. Student loan default is when you have missed multiple consecutive payments on your student loan. The professional licenses affected vary by state but can include licenses for healthcare workers, teaching licenses, lawyers, plumbers, and other professions. Although many states are moving away from this practice of denying someone’s professional license, it is still a practice in some states. So be sure to stay current on your payments!

Different Career

In a survey conducted by American Student Assistance, 53% of respondents felt their student loan debt was a contributing factor or the main factor in deciding their career field. The average student loan debt in 2019 was $31,172 with an average payment of $393 per month. This amount of debt may cause a new graduate to seek employment outside of their chosen career field to be able to afford basic bills and their student loan payment. Allowing your student loan debt to change your career path could cause you to resent your job and, ultimately, not have as successful a career as you had planned.

No Additional Education

If you ever thought of going back to school for an additional degree to further your career, your student loan debt could hold you back. If you default on your student loans you will not be able to obtain additional loans. In addition, if you are graduating from college with student loan debt you may dread the thought of taking on more debt for graduate school and avoid it altogether. Putting off a graduate degree to avoid student loan debt can cause you to miss out on promotions in your career that may require an advanced degree.

Distraction

If you have student loan debt you may be worried about making the payments or when you will ever be done paying it. Student loan debt can cause financial stress which causes distractions at work. A paper by the Center for Financial Services Innovation showed that 1 in 3 employees said that their finances caused distractions at work. If you are distracted at work this can lead to mistakes and low productivity.

How to Repair

Just because you have student loan debt, doesn’t mean it will definitely damage your career. The most important aspect to focus on is making timely payments. Here’s how to avoid student loans damaging your career:

Refinance Student Loans: If you feel your student loans may be damaging your career or you are just looking to save some money, it may be beneficial to refinance your student loans. Refinancing can help you to avoid default by establishing a more manageable payment. Refinancing can also save you money in interest costs over the life of the loan. If you want to see how much refinancing can save you, check out our student loan refinance calculator.* When you refinance your student loans, you obtain a new loan to pay off your old student loan. Your new loan presumably has a lower interest rate and thus a lower monthly payment. To be able to refinance you must have a good credit history, so this option is best used before you have trouble making payments. Credit history is just one criterion to qualify for student loan refinancing.

Payment Plans: If you have federal student loans with a high payment, check into an income-driven repayment plan. The required payment amount is based on your income. The Federal Student Aid site provides information on the various plans available. Although a payment plan based on your income will not save you money on the life of the loan, it can reduce your monthly payment.

Already in Default? If you have defaulted on a federal student loan, you need to learn how you can get out of default. Once out of default your student loans may be less of a harm to your career.

Bottom Line

You took out student loans to allow you to gain the education you needed for your dream career. Don’t let your student loan debt get in the way of that! Be mindful of how student loan debt can affect your career and research whether student loan refinancing would be beneficial for you.

*Subject to credit approval. Terms and conditions apply.