Personal Loans for Adoption Expenses

If you’re considering adoption as a way to grow your family, you may be eager to start the process, but it’s important to keep in mind that adoption can be incredibly expensive, costing tens of thousands of dollars. And the costs can be even higher if you’re planning an international adoption.

Fortunately, you can take out a personal loan to cover your adoption costs. Personal loans for adoption expenses can pay for things like legal fees, travel expenses, and medical care for the birth mother.

How much does an adoption cost?

According to the Child Welfare Information Gateway, the cost of an adoption will vary depending on the type of adoption and whether you’re using an attorney or agency. If adopting from a private agency, the costs will typically range from $30,000 to $60,000. Independent adoptions (working with an attorney) run from about $25,000 to $45,000. And intercountry adoptions tend to cost about $20,000 to $50,000.

If you opt for a private adoption through an agency, expenses may include agency fees for services, medical expenses for the birth parent, and legal fees. In an independent adoption, you may use an attorney to navigate the adoption process instead of an agency, and fees may include things like home study, legal fees for yourself and the birth parents, and the birth mother’s medical expenses. The fees for intercountry adoptions differ notably depending on the country.

Can I get help with adoption expenses?

One way that you can get help with adoption expenses is to take out a personal loan. You can apply for a personal loan to help with adoption expenses through a bank, credit union, or online lender. When you take out a personal loan, you’ll receive an upfront sum of money that you’ll repay each month until the loan is paid back in full.

Personal loans can help you cover the costs of adoption  such as:

• Agency fees
• Legal fees
• Court costs
• Travel
• Home study
• Medical bills

Personal loans can be secured or unsecured (secured loans require collateral, unsecured loans do not). Unsecured loans tend to come with higher interest rates, so be sure to pay attention to the terms. Borrowers with good credit will qualify for the better rates and terms on a personal loan.

How to take out a personal loan for an adoption

Personal loans can be a good way to get the funding you need to pay for an adoption. However, taking out a personal loan is a big decision since you’ll be responsible for repaying it with interest. Here are four steps you can take to apply for a loan to help with an adoption.

Research different lenders

To get started, research different lenders that offer personal loans by checking out your financial institution(s) or by using Google or a loan comparison site. Once you’ve identified a few lenders that might meet your needs, be sure to check their eligibility criteria. For instance, you want to know their requirements like credit score, income, and employment. This will help you exclude lenders who are unlikely to approve you for a personal loan.

Gather the necessary documentation

Next, gather all the necessary documentation. For example, you’ll likely need to provide a driver’s license or passport to verify your identity. You’ll also likely need to show pay stubs, tax returns, and bank statements to verify your financial history. Gathering your paperwork ahead of time will simplify the application process.

Fill out the application

Once you’ve identified some potential lenders and gathered the necessary paperwork, you can begin submitting your applications. Most lenders will give you the option to apply online, though banks or credit unions may require you to apply in person.

You may have to wait several days or weeks to find out whether or not you are approved. The waiting time will vary depending on the lender.

Get preapproved with multiple lenders

Compare each lender’s option. Pay attention to the rates, fees, and terms on each loan, and make a decision based on your situation. Make sure you can afford the monthly payment and that the payment period (how long you’ll have to pay the loan back) is manageable. Review all the fine print to make sure you understand the terms and conditions of the loan before accepting it.

Alternatives to personal loans for adoption expenses

Choosing to borrow money is a big decision. If you’re not sure that a personal loan is the best choice to help with your adoption expenses, here are some alternatives you can consider:

• Grants: You can apply for an adoption grant through the Gift of Adoption Fund, Help Us Adopt, and A Child Waits Foundation, among others. A grant is unlikely to cover the full cost of an adoption, but it can help cut down on expenses.
• Fundraising: Fundraising is another way you can access the money you need for an adoption. You can consider setting up a page on GoFundMe, Kickstater, or similar sites,  or using an adoption crowdfunding platform like AdoptTogether, as well as others.
• Employer-provided adoption benefits: Check with your company’s HR department to see if they offer adoption benefits. Many employers do, and this can be a good way to cover some of the costs.
• Tax credits: If you qualify, you can take advantage of the one-time federal adoption tax credit. Tax credits are directly subtracted from the tax you owe, so it’s typically preferred over tax deductions.
• Consider foster care: You might also want to consider adopting through the foster care system. Adopting through foster care may be the least expensive option, and you may be able to get your court costs and legal fees reimbursed. However, it may be harder to adopt a baby or infant from foster care.

The bottom line

If you need money to pay for an adoption, consider taking out a personal loan. If you decide to take out a personal loan, be sure to carefully consider the options available to you. Weighing important factors such as interest rate, fees, and terms will help you find the best loan to cover adoption expenses. Make sure you understand the terms and conditions before accepting a loan and borrow what you need and can afford to repay.