STEM Career Guide

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If you’re unsatisfied with your current career, changing to a career in STEM — which stands for science, technology, engineering and math — might be a solid option.

Employment in STEM occupations has grown 79 percent since 1990, from 9.7 million to 17.3 million and has outpaced overall U.S. job growth. The thirst for STEM workers hasn’t subsided, either. The demand for STEM professionals creates a huge need for new entrants into the STEM workforce.

Transitioning to a STEM career can come with financial barriers, but it can be worth the initial investment in the long run. Personal loans, grants and other sources of funding can mitigate career-change expenses.

Interested in opting for a STEM career instead of your current nine-to-five? We’ll help you understand the financial benefits, obstacles and how to get around any barriers to your STEM-related future.

Why you should consider changing your career

There are several reasons you might change to a STEM career, and they include high salary potential, job satisfaction, positive impact on society and job flexibility.

High salaries

STEM jobs pay out about 70 percent more than the national average, says StratoStar, an education company. More specifically, data from Pew Research Center states that the typical full-time, year-round STEM worker earns $54,745 and a similarly educated non-STEM worker earns $40,505, or 26 percent less.

Though not an exhaustive list, here are the different STEM sectors and possible opportunities within those sectors:

Science: Physics, chemistry, life sciences, geoscience, astronomy, social sciences, environmental studies and biology.

Technology: Information technology, programming, web development, software development, IT architecture, database administration and security and systems analysis.

Engineering: Mechanical, chemical, civil, electrical, management and geotechnical engineer (and hundreds of subcategories as well).

Math: Applied and theoretical mathematics, statistics, calculus, finance and probability.

Growing field

STEM careers are some of the fastest growing, most in-demand career categories, partially because of technology’s constant evolution.

There’s high demand for diverse, talented individuals to seek careers in these well-paid, future-shaping STEM fields. “By far, the greatest labor shortages of women and minorities will be in information and communication technologies,” says Dani Gehm, who works for ChickTech, which engages women and girls of all ages in the technology industry.

STEM unemployment rate is low, and according to the U.S. Bureau of Statistics, STEM jobs are expected to grow almost twice as much as other jobs, at 21.4 percent. In addition, 80 percent of jobs will require technical skills within the next decade.

Job satisfaction

A Pew survey indicated that 66 percent of those working in a STEM profession or teaching felt their job gave them an identity. Only 43 percent of those working in manual or physical occupations and 37 percent of those working in retail or service jobs said the same.

Impact on society

STEM extends beyond petri dishes and coding on a computer. It includes food production, manufacturing and more than meets the initial eye. Its impact on society and current gaps in U.S. STEM jobs are two reasons why many schools so heavily push STEM education. In total, the Department of Education committed $279 million in STEM discretionary grant funds in 2018.

“You can make a material difference in humanity’s quest to increase our knowledge of the universe,” says Jason Gibson, an electrical engineer who worked for NASA then started an online tutoring company helping students in the STEM field. “Whether you work in a factory, a chemical plant, design computer chips or launch rockets, people who go into STEM fields in a tangible way increase the sum total knowledge of our species on this planet.”

Flexibility

Only 18 percent of Americans believe careers in STEM have more flexibility for balancing work and family compared to jobs in other industries, according to Pew.

From virtual physics teacher to technology marketing manager, there are more flexible STEM careers available than you might think. For example, many registered nurses such as case managers or hotline nurses (who answer patients’ questions over the phone) can telecommute.

Here are a few other ideas of flexible STEM sectors and/or jobs:

• Software development

• Some engineering careers

• Medical science liaison

• Technical support representative

Affording your career change

Once you’ve decided to make the leap to a new STEM career, figure out whether your new career will require you to go back to school. If so, can you get the degree online? Or will it require attaining an online certification?

Do your research

Research the salary potential and years of school needed for your anticipated career. This will help you with a financial budget and plan.

Any initial investment could be offset by your high-paying career down the road.

However, the costs depend on what stage of your career you’re in and what degrees you’re going after. Do the math to make sure the cost of an educational program or degree will be recouped in the increased salary you’ll earn.

Always look for any grants or scholarships you can find. Grants and scholarships are free money that you don’t have to pay back for college or career school. Grants are often need-based, while scholarships are usually merit-based. Grants and scholarships can come from the federal government, your state government, the college or career school you’re considering or an organization.

You can also consider getting a student loan. Direct Subsidized and Unsubsidized loans are great options because interest rates are lower than private loans you could get from a student loan lender.

Finally, visit the schools you’re considering and ask for a full breakdown of all of your potential costs, from tuition to transportation to technology costs and more.

Online learning/certifications for specific skills

Not sure you want to fully go back to school or want to prepare before you do? Many classes and certifications are offered online. You can find both free and fee-based programs to advance your career and knowledge base.

You can find course materials, videos and lecture series through the following free and low-cost programs, some at highly-ranked colleges and universities.

You’ll need a blend of technical and professional skills to make a STEM career switch. In addition to training programs offered from colleges, universities, certificate programs, coding academies and more, take advantage of tech-focused meet-up groups and workshops. Networking is just as important as technical skills and can lead to a job, according to the National Center for Biotechnology Information.

Creating a new 529 or using leftover funds

A 529 plan is a tax-advantaged investment vehicle that encourages savings for future qualified higher education expenses such as tuition, fees, books, computers, computer software and other supplies and equipment. The advantage of a 529 plan is that while it’s not tax deductible at the federal level, it may be tax deductible at the state level or you may qualify for a tax credit. Check into your state-sponsored 529 plan.

You may still have money left over in a 529 plan if your child didn’t use it all or if he or she didn’t go to college. You can change the beneficiary to yourself by completing a form found on the plan’s website. Note that the beneficiary cannot be changed to a parent if the 529 plan is a custodial 529 plan.

You can also start a new 529 plan for yourself even though you may not have as much time on your side to build savings as you might have with a child’s account.

Grants and funding for going back to school

Don’t forget to see what educational opportunities your company currently offers — your company may pay for you to go back to school part-time. Visit your current company’s human resources office for more details on the particular back-to-school tuition reimbursement program your company offers.

Once you’ve done that, check out federal opportunities for STEM students based on various STEM sectors.

Minority and female resources

There are fewer females in traditionally white male-dominated STEM fields. The National Science Foundation reported that women’s lowest degree shares are in computer sciences and engineering (S&E).

When it comes to occupations, female and underrepresented minority scientists and engineers were more likely than their male counterparts to work in a non-S&E occupation.

Despite these numbers, female and minority numbers in STEM careers continues to increase each year. In addition to searching for grants and scholarships, it’s important to seek out women or minority mentors already in the STEM industry who can provide guidance on entering a STEM career.

Scholarship and grant opportunities for women include:

BHW Scholarship

Society of Women Engineers Scholarships

Women Techmakers Scholar Program

National Physical Science Consortium’s Fellowships in the Physical Sciences

Women in Engineering and Computer and Information Science Awards

Regent’s Healthcare Scholarship for Medicine and Dentistry

Scholarship and grant opportunities for minorities include:

National Action Council for Minorities in Engineering

Xerox Technical Minority Program

Ford Foundation’s Pre-doctoral Fellowship for Minorities

National Black Nurses Association

National Physical Science Consortium’s Fellowships in the Physical Sciences

Regent’s Healthcare Scholarship for Medicine and Dentistry

Other ways to pay

If you can’t get the assistance or funding you need to go back to school, there are a few other possibilities. Look into the benefits of a personal loan over student loans. Personal loans can be used for any purpose and have less stringent requirements than student loans. You also won’t need to verify that you’re enrolled in college when you apply for a personal loan.

Consider a side hustle or an extra job while you’re going to school — or don’t quit your day job so you can pay for your education. Being a part-time student can be a great way to pay the bills.

 

First-Time Homebuyer Grants & Programs

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Shelling out big bucks for your first home, along with shopping for a mortgage, might seem daunting. Luckily, though, there are numerous first-time homebuyer programs and grants that can help you get your foot in the homeownership door.

Here’s a look at 10 first-time homebuyer programs that are popular with rookie house hunters.

 

1. FHA loan – A loan insured by the Federal Housing Administration that’s ideal for borrowers with lower credit scores or little money saved up for a down payment.
2. USDA loan – A loan program guaranteed by the U.S. Department of Agriculture for lower-income borrowers in eligible rural areas.
3. VA loan – A loan backed by the U.S. Department of Veteran Affairs for military personnel, veterans and their families. VA loans have minimal closing costs, competitive rates and no down payment requirement, however, a funding fee is required for some borrowers.
4. Good Neighbor Next Door – A HUD program that provides housing aid — a discount of 50 percent on a home’s list price in revitalization areas — for law enforcement officers, firefighters, emergency medical technicians and pre-kindergarten through 12th-grade teachers.
5. Fannie Mae or Freddie Mac – Loans backed by Fannie Mae or Freddie Mac require 3 percent down for conventional mortgages making them ideal for first-time buyers who have strong credit but little savings for a down payment.
6. HomePath ReadyBuyer Program – A program that provides 3 percent in closing-cost assistance to first-time buyers who complete an educational course and purchase a foreclosed Fannie Mae property.
7. Energy-efficient mortgage – An EEM is backed by FHA or VA loan programs and allows borrowers to combine the cost of energy-efficient upgrades onto a primary loan upfront — all without a larger down payment.
8. FHA Section 203(k) – An FHA-backed loan that lets you borrow the funds needed to pay for home improvement projects and roll the costs into one loan with your primary mortgage.
9. Local first-time homebuyer programs and grants – Many states and cities offer first-time buyer programs and grants for down payment or closing cost assistance. These programs typically come with income restrictions and have to be repaid when you sell the home.
10. Native American Direct Loan – Backed by the VA, this program provides direct home loans to eligible Native American veterans to buy, renovate or build homes on federal trust land.

Here’s an in-depth look at each of these programs.

1. FHA loan

Pros

• Require lower credit score than conventional mortgages
• Low down payment requirement of 3.5 percent

Cons

• Requires upfront and annual mortgage insurance premiums
• Overall borrowing costs tend to be higher

Best for: Buyers with less-than-pristine credit and those who don’t have a large down payment.

If you’re not sitting on a pile of down payment cash and you have a spotty credit record, there’s a loan for that. Insured by the Federal Housing Administration, FHA loans typically come with smaller down payments and lower credit score requirements than most conventional loans. First-time homebuyers can buy a home with a minimum credit score of 580 and as little as 3.5 percent down, or a credit score of 500 to 579 with at least 10 percent down.

FHA loans have one big catch called mortgage insurance. You’ll pay an upfront premium and annual premiums, driving up your overall borrowing costs. Unlike homeowners insurance, this coverage doesn’t protect you; it protects the lender in case you default on the loan. It’s the price borrowers pay when they have less skin in the game.

Learn more about finding the best FHA lender for you.

2. USDA loan

Pros

• Requires a little to no down payment
• Can qualify with a lower FICO score (640 or higher)

Cons

• Borrower income is restricted to less than 115 percent of the median income for purchase area

Best for: Borrowers with lower or moderate incomes purchasing a home in a USDA-eligible rural area.

You may not know it, but the U.S. Department of Agriculture, or USDA, guarantees loans for some rural homes and you can get 100 percent financing. This doesn’t mean you have to buy a farm, shack up with livestock or live in the boondocks, but you do have to buy a home in a USDA-eligible area.

USDA loans also have income limits based on where you live, meaning they’re geared toward folks who earn lower to moderate incomes. Typically, you need a credit score of 640 or higher to qualify for a streamlined USDA loan. If your score falls short, you’ll have to provide extra documentation on your payment history to get a stamp of approval.

3. VA loan

Pros

• No down payment requirement, and funding fee can be rolled into loan
• Doesn’t require a minimum FICO score or private mortgage insurance

Cons

• Lenders may have their own minimum FICO score overlays

Best for: Active-duty military members, veterans and their spouses who are eligible for VA loan benefits.

Many U.S. military members (active duty and veterans) are eligible for loans backed by the U.S. Department of Veterans Affairs, or VA. VA loans are a sweet deal for eligible borrowers because they come with lower interest rates than most other loan types and require no down payment. A funding fee is required on VA loans, but that fee can be rolled into your loan costs and some service members may be exempt from paying it altogether.

Other VA loan perks include no PMI or minimum credit score. If you struggle making payments on the mortgage, the VA can negotiate with the lender on your behalf to take some stress from the equation.

4. Good Neighbor Next Door

Pros

• Deeply discounted home prices
• Can use with FHA, VA or conventional financing, or cash
• Can sell after 36 months and keep the profits

Cons

• Limited number of homes available for a limited timeframe
• Must live in property for 36 months
• Homes are sold “as-is” with no buyer’s warranty

Best for: Teachers, law enforcement, firefighters or emergency medical technicians who are looking for an affordable home.

The Good Neighbor Next Door program, sponsored by the U.S. Department of Housing and Urban Development, or HUD, provides housing aid for law enforcement officers, firefighters, emergency medical technicians and pre-kindergarten through 12th-grade teachers — the folks who help keep communities safe and well educated.

Through this program, you can receive a discount of 50 percent on a home’s listed price in regions known as “revitalization areas.” Using the program’s website, you can search for properties available in your state. You must commit to living in the home for at least 36 months so this may not be ideal if you plan to move sooner.

5. Fannie Mae or Freddie Mac

Pros

• Low down payment requirement of 3 percent
• Variety of loan terms available with fixed and adjustable rates
• Some programs allow a debt-to-income ratio, or DTI, of up to 50 percent

Cons

• Requires a minimum FICO score of 620
• Adheres to strict loan limits set by the government
• Private mortgage insurance is typically required with less than 20 percent down

Best for: Borrowers with strong credit and stable incomes who may not have a large down payment saved up.

The names might sound a bit kitschy, but Fannie Mae and Freddie Mac are government-sponsored entities that keep the U.S. mortgage market going strong. The GSEs, as they’re called for short (government-sponsored enterprises), each set borrowing guidelines for loans they’re willing to buy from conventional lenders on the secondary mortgage market.

Both programs require a minimum down payment of 3 percent. Homebuyers also need a minimum credit score of 620 (or higher, depending on the lender) and a relatively unblemished financial and credit history to qualify. Fannie Mae accepts a debt-to-income ratio as high as 50 percent in some cases. You’ll still pay for PMI because you’re putting less than 20 percent down, but you can get it canceled once your loan-to-value ratio drops below 80 percent.

6. Fannie Mae’s HomePath ReadyBuyer Program

Pros

• Provides up to 3 percent in closing cost assistance for first-time buyers

Cons

• Selection of homes may be limited in your area
• Must complete an online first-time buyer education course before making an offer

Best for: First-time homebuyers who don’t have a lot of money for closing costs and don’t mind buying a foreclosed home.

Fannie Mae’s HomePath ReadyBuyer program is a little-known initiative geared toward first-time buyers interested in foreclosed homes that are owned by Fannie Mae. After taking a required online home-buying education course, eligible borrowers can receive up to 3 percent in closing cost assistance toward the purchase of a HomePath property. The trick is finding a HomePath property in your market, which might be a challenge since foreclosures account for a smaller chunk of listings today.

7. Energy-efficient mortgage (EEM)

Pros

• Can roll the cost of energy efficient improvements into a primary mortgage
• Insured by FHA or VA loan program
• Doesn’t require a larger down payment to add improvements into primary loan amount

Cons

• Loans may have dollar-amount caps on energy-efficient upgrades

Best for: Homebuyers who want to make their home more energy-efficient but don’t have the up-front cash for upgrades.

Making a home more energy efficient is good for the environment, and good for your wallet by lowering your utility bills. Making green upgrades can be costly, but you can get an energy-efficient mortgage, or EEM loan, that’s insured through the FHA or VA programs.

An EEM loan lets you tack the cost of energy-efficient upgrades (think new insulation, a more efficient HVAC system or double-paned windows) onto your primary loan upfront — all without a larger down payment.

8. FHA Section 203(k)

Pros

• Allows you to roll cost of renovations into your primary mortgage
• Home’s value is calculated is based on its improved value
• Low down payment requirement of 3.5 percent

Cons

• Improvements must cost more than $5,000
• May pay a higher interest rate to roll rehab costs into loan

Best for: Homebuyers interested in purchasing a fixer-upper but who don’t have a lot of cash to make major home improvements.

If you’re brave enough to take on a fixer upper but don’t have the extra money to pay for renovations, an FHA Section 203(k) loan is worth a look.

Backed by the FHA, the loan calculates the home’s value after improvements have been made. You can then borrow the funds needed to pay for home improvement projects and roll the costs into one loan with your primary loan amount. You’ll need a down payment of at least 3.5 percent, and improvements must cost more than $5,000.

9. Local first-time homebuyer programs and grants

Pros

• Offers down payment and closing cost assistance to bridge gap in cash savings
• Loans come with low or zero interest rates

Cons

• Income limits typically apply, depending on the program
• Some loans have to be repaid when you sell the home

Best for: First-time homebuyers who need closing cost or down payment assistance.

In an effort to attract new residents, many states and cities offer first-time homebuyer grants and programs. The aid comes in the form grants that don’t have to be repaid or low-interest loans with deferred repayment to cover down payment or closing costs. Some programs may have income limits, too. Before buying a home, check your state’s housing authority website for more information.

Contact a real estate agent or local HUD-approved housing counseling agency to learn more about first-time homebuyer loans in your area.

10. Native American Direct Loan

Pros

• No down payment or PMI required
• Low closing costs and interest rate

Cons

• Maximum loan limits apply depending on the area
• Property selection may be limited

Best for: Eligible Native American veterans wishing to buy a home on federal trust land.

The Native American Direct Loan provides financing to eligible Native American veterans to buy, improve or build a home on federal trust land. This loan differs from traditional VA loans in that the VA is the mortgage lender.

The NADL has no down payment or private insurance requirements, and closing costs are low. Borrowers are required to pay a minimal funding fee of 1.25 percent to the VA. The VA states on its website that borrowers typically pay a 4.75 percent interest rate but that can change with market conditions. Maximum loan limits apply.

First-Time Home Buyer Programs by State: