Living in Israel is awesome – and for many people, it is a true dream come true.  To make the dream of living in Israel a reality, there are many practical steps that one must take to ensure successful absorption into Israeli society.  From my experience, having proper expectations is one of the key ingredients to a successful Aliyah.

Research

Clearly, for some Olim, finances are a concern – how will I make ends meet in the beginning? How much can I expect to earn? Which government benefits will enable me to get on my feet during the transition?  With this in mind, I recommend that you map out the financial benefits that you will potentially be eligible to receive (free health care for the first year, sal klita, kitzbat yeladim, ulpan, etc.) so that you are aware of your budget.

For those who are coming with debt, there are additional concerns that should be addressed when formulating your Aliyah plan.  Whether you have college loans, credit card debt, unpaid income taxes, alimony, or even mortgage obligations, we at Nefesh B’Nefesh urge you to familiarize yourself with the financial details of living in Israel, including budgeting and potential salary rates, so that you are prepared for what would be a reasonable amount of debt to carry in both the short and long term.

Debt

Your individual professional skills will be a significant indicator of how much you will be able to earn. If you will need to continue to repay your debt on a monthly basis, it is important to ascertain whether the monthly payment is something that you can absorb while supporting yourself on an Israeli salary. Those in the hi-tech industry can expect to earn enough to cover monthly expenses as well as some loan repayment, while social workers will have a greater challenge. (Consult with our employment advisors via email to get a better look at your options: [email protected]).

You should consider if it is wise to wait until you can pay back a significant chunk of your debt before making Aliyah.  Some prospective Olim pay back a higher monthly sum than is required so that when they arrive in Israel, they can ask the loan provider for a short period of remittance during which they don’t need to make payments.  This will give the Oleh a window of time to better secure employment without the heavy pressure of loan repayment.

To be as upfront as possible, making Aliyah is not an escape from financial difficulty, and it is crucial not to leave debts unresolved. Creditors generally continue to try to find you at any contact numbers or addresses that they have, even if you have already left the country. Regarding credit card debt, in some cases, companies can be approached for a settlement. There are situations where creditors will be happy to come to a compromise solution by eliminating some of the interest charges or penalty charges for late payments. If and when it is possible, it is best to try and completely pay off credit card debt by negotiating a compromise before making Aliyah.

In the case of student loans, these can frequently be consolidated in order to minimize the payment that is owed. It is worth considering spreading out your debt over a long period of time if you have confidence that your earning power will increase with additional job experience and networking for opportunities.

Get Advice

If you’re like most US University graduates, there’s a good chance you’re looking at a hefty loan package to pay back coming out of college. At Nefesh B’Nefesh, we see these loans as a calculated investment in your future. There’s no denying that coming over with a US degree may give you the upper hand in landing a job or negotiating a higher salary when you enter the job market here in Israel.

Nonetheless, planning to move your life over 10,000 kilometers away doesn’t make paying back your debt any easier. It’s important to keep in mind that, as a general rule, Israeli salaries tend to be lower than their US counterparts. This doesn’t make your Aliyah unattainable, but it does mean that you need to plan wisely when thinking about Aliyah.

Many Olim are dissuaded from following their dream due to the large sum of money they owe the US Federal Government, banks, or private lenders/servicers. It’s important to put together a game-plan before your Aliyah date on how you’re going to tackle your student debt.  There are even new technologies that can help you figure out your actual financial position.

Here are some strategies and tips to repay your loans on an Israeli income:

Step 1: Check the current status of your student loans with Federal Student Aid – an office of the US Department of Education.

When you log in, you will see your entire loan totals, dates taken out, repayment plan type, and your Service/Lender (who owns your loans). Check to make sure that the “current status” of your loans is correct (in school, graduated, grace period, etc).

Step 2: Determine what type of Repayment Plan you would like to go with (Standard, Pay as You Earn, Income Based, etc). Depending on how much you owe, how much you make, and what other financial support or debts you have, you should consider the best plan for you.

Check out this Payment Calculator to compare plans based on your loans.

If you work as a teacher or for a certified non-profit organization/public service organization, see here for special benefits (Public Service Loan Forgiveness – PSLF). Under this repayment plan, you may be eligible for tax-free loan forgiveness after 10 years of qualifying payments.

Step 3: Re-certify your payment plan every year or so by logging in to your Loan Servicer/Lender and renewing your payment option.

Some things to keep in mind: If you select the correct Repayment plan for your salary, your minimum qualifying payment may be $0 per month (based on your Israeli salary). This is because the minimum wage in Israel is below the limit needed to qualify for a payment each month in the US.

The current US policy is that Federal Student Loans are forgiven after 30 years of qualifying payments. If you work for a certified non-profit or as a teacher, check step 2, which could allow your loans to be forgiven after 10 years of qualifying payments.

Important Factors to Keep in Mind

1. While attending graduate school in Israel, you can apply for loan deferment, which allows you to temporarily put certain loan payments on hold. While in deferment, you’re able to postpone payments on Federal Perkins Loan, Direct Subsidized Loan, and/or Subsidized Federal Stafford Loan, and they do not incur interest. All other loans will incur interest.
2. Serving in the IDF also seems to qualify as a reason to apply for loan deferment, but this should be confirmed by your Loan Servicer.

All of this information is relevant only to US University loans and should be confirmed by each Oleh’s Student Loan Servicer.

For information on consolidating federally guaranteed student loans: Loan Consolidation

General information on student loan consolidation: http://www.finaid.org/loans/consolidation.phtml

In Summary

In our experience, the decision to make Aliyah is a process that requires careful logistical and financial planning. Nefesh B’Nefesh does not actively promote this move in situations where it seems that significant obstacles may prevent an easy and successful transition. I would encourage you to discuss your individual situation with one of our Aliyah advisors by calling 1-866-425-4924 or emailing [email protected].

Edited by Marc Rosenberg – Nefesh B’Nefesh, Director of Pre-Aliyah

* Last updated on January 12, 2026 *