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Pharmacy school student loans are one way for potential pharmacists to cover some or all of the costs associated with attending pharmacy school. Knowing the pros and cons of pharmacy school loans can help you decide if this route is right for you.

Below, we explore how much it costs to attend pharmacy school, different ways to pay for it, what a pharmacy school loan covers, and the difference between federal and private pharmacy student loans.

How Much Does Pharmacy School Cost?

The cost of pharmacy school can vary significantly depending on the institution, whether you qualify for in-state tuition, and how long your program lasts. PharmD programs typically take four years to complete after finishing prerequisite coursework, though some accelerated options exist.

Costs generally include:

•   Tuition

•   Mandatory fees

•   Books and lab supplies

•   Licensing exam prep and fees

•   Living expenses

Because pharmacy programs are intensive (particularly accelerated three-year programs), many students find it difficult to work full-time while enrolled — which can increase borrowing needs.

💡 Quick Tip: You can fund your education with a competitive-rate, no-fees-required private student loan that covers up to 100% of school-certified costs.

Average Cost of Pharmacy School

Total cost of attendance for pharmacy school — including four years of tuition, fees, living expenses, transportation, and books/supplies — generally ranges from around $230,000 to $390,000.

Average Cost for Public vs Private Programs

The difference between public and private institutions can be substantial.

For example:

•   The total cost of earning a PharmD at the Ohio State University College of Pharmacy is roughly around $231,800 for residents and $262,500 for out-of-state students.

•   The total cost of earning a PharmD at California Northstate College of Pharmacy is approximately $394,000.

Attending a public pharmacy school as an in-state student is generally the most affordable route to a PharmD degree. If your state lacks a public pharmacy program, you can often receive significant tuition discounts — sometimes paying in-state rates — at out-of-state public universities through regional tuition reciprocity agreements.

Private pharmacy schools generally charge the same tuition regardless of residency. These schools tend to have higher sticker prices but may offer institutional scholarships to offset costs

Average Student Loan Debt for Pharmacy School

The majority of pharmacy students rely on loans to help pay for their education. The average student loan debt at graduation across all colleges and schools of pharmacy is around $171,000, according to the American Association of Colleges of Pharmacy (AACP).

Despite these high debt loads, the return on investment can be significant, as the average pharmacist salary is typically well over six figures, with a median annual pay of $137,210.

What Can You Use a Pharmacy School Student Loan On?

There are several ways a student loan can be used to cover the cost of a pharmacy school education:

Tuition

Tuition is the one of the largest expenses for pharmacy students. Loan funds are usually disbursed directly to your school to cover tuition first. Any remaining funds are refunded to you for other education expenses.

Fees

Mandatory university and program-specific fees may included:

•   Lab fees

•   Technology fees

•   Student activity fees

•   Health insurance (if required)

These charges are generally included in the official cost of attendance and can be covered with student loans.

Books and Supplies

Pharmacy programs often require specialized textbooks, lab materials, and equipment. Some students may also need:

•   Clinical attire

•   Digital drug reference tools

•   Licensing exam fees and preparation costs

These costs can add up to thousands of dollars over four years.

Recommended: How to Pay for College Textbooks

Living Expenses

Room and board is another expense that can be paid for with pharmacy school loans. Students can use their borrowed funds to pay for student housing — whether that’s in a dorm room or an off-campus apartment.

Pharmacy school loans can also be used to pay for transportation costs directly related to your education, such as travel to/from camp or clinical rotations, as well as any necessary childcare.

Living expenses are factored into your schools’ estimated cost of attendance, which determine your maximum loan eligibility.

Pharmacy School Student Loans: Pros & Cons

Borrowing can make pharmacy school possible — but it’s not without risks. Understanding both sides can help you make an important decision.

Pros of Using a Pharmacy School Student Loan

There are several significant advantages of financing pharmacy school with loans:

1. Focus Fully on Your Studies

Pharmacy programs are rigorous. Borrowing can allow you to focus exclusively on coursework, clinical rotations, and board exam preparation without the distraction of a side job.

2. Graduate More Quickly

If you don’t have to work significant hours, you may be able to take a heavier course loan or avoid extending your program — potentially finishing on time and entering the workforce sooner.

3. Access to Flexible Repayment Options

Federal loans, in particular, offer income-driven repayment (IDR) that ties your monthly payments to your income. This can provide breathing room during residency or lower-paying roles.

4. Potential for Loan forgiveness

Numerous federal and state programs offer loan forgiveness and repayment for pharmacists who work in underserved communities or specific healthcare sectors. A few different pharmacy student loan forgiveness options include:

•   Public Service Loan Forgiveness (PSLF)

•   National Institutes of Health Loan Repayment Programs

•   Substance Use Disorder Workforce Loan Repayment Program

•   State-based student loan forgiveness programs

5. Build Credit History

Making consistent, on-time payments on your federal or private student loans after graduation can help you establish a positive credit history. This can make it easier to qualify for loans like mortgages with favorable rates and terms.

Cons of Using a Pharmacy School Student Loan

Despite the benefits, student loans come with serious long-term considerations:

1. High Total Repayment Costs

Interest on graduate student loans generally accrues while you’re in school; over time you may repay significantly more than you originally borrowed.

2. Career Changes Don’t Eliminate Debt

If you decide pharmacy isn’t the right fit after graduating — or leave the profession later — you’re still obligated to repay your pharmacy student loans. You typically need to start repaying federal student loans six months after you graduate pharmacy school.

3. Financial Pressure After Graduation

Large monthly payments can limit your financial flexibility after graduation. This could impact decisions about buying a home, starting a family, or pursuing an entrepreneurial venture.

4. Policy Changes Can Affect Benefits

Federal loan programs, repayment options, and forgiveness programs can change over time. For example, a repayment strategy you planned on during your first year — such as PSLF or specific IDR plan — could be altered, capped, or phased out by the time you graduate, potentially increasing your total cost of debt.

5. Credit Risk With Private Loans

With private student loans, approval and interest rates depend heavily on the borrower’s or cosigner’s credit history. They often require good credit for approval, use risk-based pricing, and can damage your credit file if payments are missed. Unlike federal loans, they generally don’t offer IDR plans or forgiveness options

Types of Pharmacy School Loans

There are several borrowing options available to pharmacy students, each with unique terms and protections.

Federal Pharmacy School Loans

Graduate students typically begin with federal Direct Unsubsidized Loans offered through the U.S. Education Department.

Starting in July 2026, professional students (including pharmacy students) may borrow up to $50,000 per year in Direct Unsubsidized Loans, with a lifetime cap of $200,000. Interest accrues while you are in school, but you don’t need to begin repayment until six months after you graduate, leave school, or drop below half-time enrollment.

In addition, some pharmacy students may qualify for Health Professional Student Loans (HPSL). These are administered by the U.S. Department of Health and Human Services (HHS) through the Health Resources and Services Administration (HRSA).

HPSL loans are need-based and available to eligible students in pharmacy and other health professions. They feature a fixed 5.0% interest rate that is subsidized until repayment begins 12 months after graduation; loan amounts vary by school. Eligibility is determined by your FAFSA data and parental financial data (required regardless of dependency status).

Graduate PLUS Loans

Graduate PLUS Loans have historically allowed students to borrow up to the full cost of attendance (minus other aid). These loans require a credit check and generally carry higher interest rates than Direct Unsubsidized Loans.

However, Graduate PLUS Loans will no longer be available to new borrowers beginning July 1, 2026. Students planning to enroll after that date may need to explore alternative financing options if they exceed Direct Loan limits.

Private Pharmacy School Loans

Private pharmacy school loans are credit-based, non-federal financing options designed to bridge the gap when federal aid and scholarships are insufficient. Offered by banks, credit unions, and online lenders, these loans typically require a cosigner and feature either fixed or variable interest rates.

Rates can be competitive for graduate students (or cosigners) with excellent credit. However, they lack the federal protections found in government loans, such as income-driven repayment (IDR) plans and specialized forbearance programs. While private loans can help cover remaining tuition and living expenses, it’s important to compare rates and terms carefully after exhausting your federal borrowing limits.

💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.

Other Ways to Pay for Pharmacy School

Loans aren’t the only way to pay for graduate school. Exploring additional funding sources can reduce your long-term debt burden.

Scholarships

Professional organizations, universities, pharmacy chains, pharmaceutical companies, and private foundations offer scholarships specifically for pharmacy students. This type of funding does not need to be repaid and may be awarded based on academic performance and/or a commitment to a community or underserved area.

The AACP can be a great resource for finding a pharmacy school scholarship. You can also contact the college or school of pharmacy of your choice for information about scholarships opportunities.

Recommended: Scholarship Search Tool

Grants

Grants are generally need-based and funded by federal, state, or institutional sources. Although less prevalent for graduate students than undergraduates, certain programs still offer grant opportunities — particularly for students committed to serving high-need communities.

Completing the Free Application for Federal Student Aid (FAFSA®) will determine your eligibility for government-based grants. In addition, many universities use your FAFSA data to award their own internal grants or scholarships based on your financial profile.

Income-Driven Repayment Plan

While not a funding source up front, enrolling in an IDR plan after graduation can make repayment more manageable. IDR plans base payments on income and family size, may extend repayment terms, and can offer forgiveness after a set number of qualifying payments.

While there are currently a number of IDR plans to choose from, borrowers who take out loans on or after July 1, 2026, will only have access to a new plan called the Repayment Assistance Plan, or RAP. With RAP, your monthly payment is based on a percentage — 1% to 10% — of your adjusted gross income. The percentage scales with income.

These plans can be especially helpful for pharmacy school graduates pursuing lower-paying roles, residencies, or public service positions.

How to Build a Pharmacy School Financing Strategy

Borrowing strategically can reduce financial stress both during and after school.

Start With Free Aid

You generally want to maximize all sources of “free money” for school (such as scholarships and grants) before turning to loans. Be sure to complete the FAFSA early each year to determine federal, state, and institutional aid eligibility.

Even small awards can reduce your need to borrow — and therefore reduce interest costs later.

Compare Federal vs Private Loan Benefits

Federal loans generally offer more flexible repayment options, deferment protections, and forgiveness opportunities. Private loans may offer competitive rates for borrowers with excellent credit but typically lack federal safety nets.

When comparing federal vs private loans, it’s important to consider:

•   Interest rates

•   Origination fees

•   Repayment flexibility

•   Forgiveness eligibility

•   Deferment and forbearance options

Plan for Long-Term Repayment

Before borrowing, it’s a good idea to estimate your total projected debt and potential monthly payments. You can then compare that with expected starting salaries in your desired practice setting.

Consider:

•   Whether you plan to pursue residency

•   Geographic salary differences

•   Your desired lifestyle and financial goals

Running loan repayment scenarios now can prevent unpleasant surprises later.

The Takeaway

Pharmacy school can be a worthwhile investment — but it often requires significant borrowing. It’s important to understand the full cost of attendance, average debt levels, and the pros and cons of pharmacy school loans before signing a promissory note.

To pay for pharmacy school, you generally want to start with free aid, prioritize federal loan options when possible, and think strategically about long-term repayment. With careful planning, you can finance your PharmD in a way that supports both your education goal and your financial future.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

How long does it take to pay off pharmacy school loans?

Repaying pharmacy school loans typically takes between 10 and 25 years, depending on the repayment strategy and the type of loans you have. The standard repayment plan for federal student loans issued after July 2026 ranges from 10 to 25 years, depending on loan amount. If you opt for an income-driven repayment plan, you may have up to 30 years to repay your loans. After that, any remaining balance may be forgiven.

How can I pay for pharmacy school?

You can pay for pharmacy school using a combination of “free money” and loans. Start by maximizing scholarships and grants, which do not need to be repaid. Complete the FAFSA® to determine eligibility for government and institutional aid. Next, prioritize federal Direct Unsubsidized Loans and potentially Health Professional Student Loans (HPSL), for their offer fixed, often lower interest rates and repayment protections.

If there is a funding gap, private pharmacy school loans can cover the remaining cost of attendance, including tuition, fees, books, and living expenses.

What is the average student loan debt for pharmacy school?

The average student loan debt for pharmacy school graduates is around $171,000, according to the American Association of Colleges of Pharmacy (AACP). While debt is high, the median annual salary for a pharmacist is typically $137,210, which can make the long-term financial return significant.

Are pharmacy school loans eligible for forgiveness?

Yes, federal pharmacy school loans are eligible for forgiveness through several programs. The most notable is Public Service Loan Forgiveness (PSLF), which forgives the remaining balance on Direct Loans after 120 qualifying monthly payments while working full-time for a qualifying employer. Pharmacists who work in high-need or underserved areas may also qualify for specialized federal and state loan repayment assistance and forgiveness programs, such as those offered by the National Institutes of Health (NIH) or the Substance Use Disorder Workforce Loan Repayment Program.

Should you refinance pharmacy school loans after graduation?

Refinancing your pharmacy school loans after graduation can help you secure a lower interest rate, reduce monthly payments, or adjust your repayment term. However, keep in mind that extending your term may increase the total interest paid over the life of the loan. Additionally, refinancing federal loans converts them into private ones, meaning you forfeit federal protections like income-driven repayment and loan forgiveness. This move is generally best if you have excellent credit and are comfortable trading federal benefits for more favorable private terms.

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Photo credit: iStock/Vaselena

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Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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Loans have become an integral part of American financial life. We need a mortgage to buy our first home and an auto loan to purchase a car. More recently, people are turning to personal loans to pay surprise bills and avoid high-interest credit card debt. But just because you need a loan doesn’t mean a lender is going to give you the loan — and interest rate — you want.

If you’re struggling to qualify for a loan, a friend or family member may be able to help by becoming a co-borrower. By leveraging their income, credit score, and financial history, you may qualify for better loan terms. Let’s dive into the details.

Understanding Co-Borrowers

As you’re considering your options, a natural first question may be, what is a co-borrower? Essentially, a loan co-borrower takes on the loan with you, and their name appears on the loan alongside yours. They will be equally responsible for paying the loan back and have part ownership of whatever the loan buys. When you take out a mortgage with someone, the co-borrower will own half the home.

Spouses often co-borrow when buying property or taking out a personal loan for a home improvement or remodeling project. In other circumstances, two parties become co-borrowers so they can qualify for a larger loan or better loan terms than if they were to take out a loan solo.

Having a co-borrower can help two people who both want to achieve a financial goal — such as first-time homeownership or buying a new car — put in a stronger application than they might be able to do on their own. The lender will have double the financial history to consider, and two borrowers to rely on when it comes to repayment. Therefore, the loan is a less risky prospect for the lender, which may translate to more favorable terms.

Recommended: All About Variable Interest Rate Loans

Qualifying as a Co-Borrower

If you’re planning to have a co-borrower on your personal loan application, it helps to understand what criteria you both must meet in order to be accepted by the lender. Let’s take a closer look at common factors that lenders consider.

Credit Score

A credit score can have a significant impact on whether your loan application is approved and what terms you’re offered. There’s no magic number, but generally speaking, lenders prefer to see a score of 620 or higher. You and your co-borrower may want to check your credit scores at no cost before you apply.

Proof of Income and Employment

To help determine whether co-borrowers can afford loan payments, a lender will likely want to see proof of a stable income and employment. You may both be asked to provide recent pay stubs, tax returns, and bank statements. You might also be asked to show a letter from your employers verifying your employment status, how long you’ve both been employed, and your salaries.

Debt-to-Income Ratio

Debt-to-income ratio, or DTI ratio, is a comparison of your monthly debts to your gross monthly income (before taxes). Lenders use this information to help determine how risky it would be to loan money to a borrower. It can affect your ability to borrow money and the interest rate you’ll receive. Generally, lenders like to see a DTI that’s no higher than 36%, though there may be some wiggle room.

In addition to the above, lenders also usually consider:

•   Financial history. This includes recent bankruptcies, judgments, and liens.

•   Age. Many lenders have a minimum age for co-borrowers, typically 21 to 25 years of age.

•   Citizenship. Co-borrowers generally must be either citizens or permanent residents of the U.S.

Co-Borrower Process

If you’re applying for a loan with a co-borrower, the application process is fairly similar to the one you’d follow if you were applying alone.

A good first step is to reach out to your lender and start the prequalification process. If your co-borrower has a strong credit profile, that could improve your odds of qualifying for better rates and terms.

Next, you and your co-borrower will need to complete the loan application. You’ll also both undergo credit checks, and the lender will evaluate your finances. You may be asked to provide documentation such as pay stubs, bank statements, or tax forms.

Within a few days or so, you’ll find out if you’re approved and what your loan terms are. Once you agree to the terms, your loan funds will be disbursed, usually within a week. Your lender will also share details about how to make monthly payments.

Co-Borrower vs Cosigner

A cosigner plays a slightly different role than a co-borrower. A cosigner’s income and financial history are still factored into the loan decision, and their positive credit standing benefits the primary applicant’s loan application. But a cosigner does not share ownership of any property that the loan is used to purchase, and they will help make loan payments only if the primary borrower is unable to make them.

Cosigning helps assure lenders that someone will pay back the loan. Typically, a cosigner has a stronger financial history than the primary borrower. This can help someone get approved for a loan they might not qualify for on their own or secure better terms.

No matter which route you choose, there are potential credit implications to keep in mind. For example, when you apply for a loan, the lender will likely do a hard credit pull. This may cause credit scores to temporarily dip for you and your cosigner or co-borrower.

Both parties may also see a drop in their credit score if monthly payments are late or missed altogether. (And remember, cosigners will be on the hook for making loan payments if the main account holder can’t.) On the flip side, on-time payments can help boost or build credit scores.

When should you choose a cosigner vs. a co-borrower? The answer depends on your situation and goals. If you intend on sharing ownership of whatever you buy with the loan, then a co-borrower may be a good choice. If you simply need someone with a strong credit history to bolster your loan application, then consider using a cosigner.

Recommended: What Is Revolving Credit?

The Takeaway

Taking out a loan is a big decision, and doing so with a co-borrower carries additional risks. A co-borrower is a partner in the loan and any property the loan is used to purchase. If one borrower cannot make their payments, the co-borrower will be on the hook for the full amount. But if both parties can come to an agreement about how they’ll handle potential financial hardships, co-borrowing can have major benefits. By pooling their income and debt, borrowers may lower their debt-to-income ratio and qualify for a mortgage or personal loan with a lower interest rate and better terms.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

FAQ

Are co-borrowers equally responsible for a debt?

Co-borrowers are equally responsible for the debt. If one borrower cannot pay, the other must cover the entire amount.

Does a co-borrower increase your approval odds?

A co-borrower with a higher income or better credit score can help you qualify for a loan and potentially secure better interest rates.

Does a co-borrower have ownership rights?

A co-borrower typically has ownership rights to the asset being purchased. The co-borrower is a joint owner on the title and has a legal stake in the asset.

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SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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If you’re married and struggling to pay off multiple debts, you might consider applying for a debt consolidation loan jointly with your spouse. This approach allows you to roll multiple loan payments into a single monthly payment, which can simplify your household finances, reduce stress, and potentially save money.

Depending on your — and your spouse’s — income and credit score, getting a debt consolidation for married couples could improve your chances to qualify for a lower rate or better terms compared to applying on your own. However, there are also some downsides to consolidating debt when you get married. Here’s what you need to know.

What Are Debt Consolidation Loans?

A debt consolidation loan allows you to combine your outstanding debt balances into one loan, leaving you with a single monthly payment. In other words, you take out a new loan and use the proceeds to pay off your existing debt.

You can use a debt consolidation loan to combine different types of debt, such as credit cards, personal loans, and medical debt. It won’t erase your debts, but it can make things easier by simplifying your payments. If you can qualify for a debt consolidation loan with a lower interest rate than what you’re paying on your current debts, you could also save money.

Typically, debt consolidation loans are unsecured personal loans, meaning they don’t require collateral. However, some people choose to use secured loans, like a home equity loan. Either way, the goal is to reduce the complexity of managing multiple debts and, ideally, save on interest.

Benefits of Debt Consolidation for Married Couples

Debt consolidation offers several advantages for married couples looking to streamline their finances and reduce financial pressure. Here’s a look at the key benefits:

Simplified Financial Management

Managing multiple debts as a couple can be overwhelming, especially when you’re juggling other financial responsibilities such as bills, savings, and investments. Consolidating your debts into one loan, and one monthly payment, can make it easier to stay on top of your monthly bills.

A simplified approach to paying off your combined debts can also reduce stress, make it easier to set (and stick to) a household budget, and enable you to work together to achieve your financial goals, whether it’s buying a home, building an emergency fund, or planning for retirement.

Potential for Lower Interest Rates

One of the reasons why many people consolidate debts is to save on interest. This not only saves you money over time but can also help you pay off your debt faster.

When you apply for a debt consolidation loan as a couple, the lender will use your combined income and credit profiles to determine if you qualify and, if so, what your interest rate will be. Applying with your spouse might help you qualify for a lower rate, especially if they have better credit than you. Reducing the overall interest rate on your combined debt can result in significant savings over time.

Recommended: Debt Payoff Guide

Types of Debt Consolidation Loans

There are several types of debt consolidation loans for married couples, each with its own benefits and drawbacks. The right choice will depend on your needs and financial situation.

Personal Loans

A personal loan is one of the most common forms of debt consolidation. These loans are typically unsecured, meaning they do not require collateral like a house or car. With a personal loan, individuals or couples can consolidate various types of debt into one loan with a fixed interest rate and a set repayment term.

A personal loan for debt consolidation can be a smart way to consolidate debt if you qualify for a low interest rate, have enough funds to cover your debts, and get a manageable repayment term. Because these loans are unsecured, your rate and terms will largely depend on your and your partner’s credit profile.

Home Equity Loan

If you and your spouse own your home and have built up significant equity, you might consider using a home equity loan to consolidate your debts as a couple. This allows you to borrow against the equity in your home and use the funds to pay off other loans and credit card balances.

Home equity is the difference between the appraised value of your home and how much you owe on your mortgage. Depending on the lender, you may be able to borrow up to 85% of the equity you own.

Since home equity loans are secured against the value of your home, lenders can often offer competitive interest rates, usually close to those of first mortgages. However, this type of debt consolidation loan is secured by your home. If you and your spouse are unable to keep up with payments, you could lose your home.

Student Loan Consolidation

In the past, the government allowed married borrowers to combine their federal student loans into one joint consolidation loan, but that program ended in 2006.

Currently, the only way to consolidate federal student loans with a spouse is by using a private lender. With private student loan consolidation or refinancing, you can combine your federal or private student loans into a single private loan at a new interest rate.

If you apply jointly with your spouse, the lender will look at your combined household income and both of your credit scores. If your spouse has better credit or a higher income than you, refinancing with your spouse may allow you to qualify for a lower interest rate than you’d get on your own.

However, not all lenders offer spouse student loan consolidation, which can limit your options. Also keep in mind that refinancing federal loans with a private lender means giving up federal loan benefits and protections, including the ability to enroll in an income-driven repayment plan and eligibility for loan forgiveness programs.

Recommended: How to Use a Personal Loan for Debt Consolidation

Factors to Consider Before Consolidating Debt

Before committing to a debt consolidation loan as a married couple, it’s important to consider the potential complications and drawbacks of this decision.

Different Money Management Styles

When you take out a debt consolidation loan with your spouse, you’re both on the hook for the payments. So it’s worth thinking about how you handle money as a couple and if you’re okay sharing the debt. Are you both ready to commit to making monthly payments and following a budget together? If managing money together seems challenging, you might want to look into other options such as consolidating your debts separately.

Marital Breakdown

If you take out a loan as co-borrowers, you’re both 100% legally responsible for paying it back, even if things don’t work out and you separate. It doesn’t matter if your partner has been paying the loan all along and agrees to continue. If you separate or divorce and that partner stops making payments, the lender will look to you to repay the debt.

Also, keep in mind that you can’t remove your name from a joint loan without the lender’s permission. If approval was based on your joint personal loan application, the lender may not be willing to do that. Should your marriage break down, you might end up with payments you can’t afford to make.

Credit Score Impact

Even after you get married, you and your spouse still have separate credit reports. When you apply for a new loan as co-borrowers, the lender will do a hard credit pull on both of your credit reports, which can cause a small temporary dip in your scores. And if either of you misses a payment or falls behind on the loan, it can hurt both your credit scores — even if it’s not your fault.

If you handle repayment responsibly, however, a joint debt consolidation loan for married couples could positively influence your individual credit histories over time.

Irreversible Process

When you consolidate debts with a spouse, the process is permanent. You won’t have the opportunity to revert your former debts to their original state. Once you use the proceeds of the new loan to pay off your existing loans, those accounts will be closed. This could be problematic if you consolidate federal student loans into a private loan, since you’ll lose your federal protections like forgiveness and forbearance.

Takeaway

Debt consolidation loans for married couples allow you and your spouse to combine multiple debts into one new loan. This can be an effective way to simplify your financial situation, reduce interest rates, and take control of your debt.

Before you jump in, however, it’s a good idea to discuss how a joint loan will affect your individual credit scores, who will make the payments, and how refinancing will impact your future financial goals.

Whether or not you agree that credit card interest rates should be capped, one thing is undeniable: Credit cards are keeping people in debt because the math is stacked against you. If you’re carrying a balance of $5,000 or more on a high-interest credit card, consider a SoFi Personal Loan instead. SoFi offers lower fixed rates and same-day funding for qualified applicants. See your rate in minutes.

SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

FAQ

Can a married couple consolidate their debt into one loan?

Yes, married couples can combine their debts into one loan if they qualify. The process typically involves applying for a personal loan or a home equity loan in both spouses’ names and using it to pay off one or both of their individual debts.

If your spouse has a stronger credit score than you, applying for a consolidation loan together could improve your chances of approval and potentially secure a better interest rate. However, both partners are equally responsible for repaying the loan, so it’s important to ensure that consolidating the debt benefits both parties.

How will debt consolidation affect credit scores?

Debt consolidation can impact credit scores in both positive and negative ways. Initially, applying for a new loan may result in a temporary dip in your credit scores due to a hard inquiry. However, if you use the loan to pay off high-interest credit card debt and make timely payments, it can improve your credit profile over time.

What are the alternatives to debt consolidation loans?

Alternatives include:

•   Balance transfer credit cards: These cards may offer a low or 0% introductory interest rate for transferring existing balances. This can help you save money if you are able to pay off the balance within the promotional period; however, transfer fees may negate the savings.

•   Debt snowball or avalanche methods: These strategies focus on paying off smaller debts first (snowball) or debts with the highest interest rates first (avalanche) without consolidating.

•   Debt management plans (DMPs): Offered by credit counseling agencies, DMPs help negotiate lower interest rates and consolidate payments without taking out a new loan.

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SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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A payday loan is a high-cost, short-term loan that gives you a quick infusion of cash to tide you over until your next paycheck. If you’ve taken out several payday loans, you may wonder about your repayment options. Consolidating them by taking out a single new loan to pay off the multiple high-interest ones can be an option. For some people, it can be a path out of the debt cycle.

It’s important to understand how this process can work and its pros and cons.

Understanding Payday Loan Consolidation

Before you learn about payday loan debt consolidation, a brief note about these loans: They are typically used by people who earn less than $50,000 per year. In fact, about one in 10 people earning less than $50,000 has used a payday loan or pawn or auto-title loan. Most people who obtain payday loans work, but they often work in jobs with inconsistent hours and relatively low pay.

These loans can offer cash when needed for individuals who are falling behind on rent, utilities, or car payments. But about 80% of people who take out a payday loan will take out a second one in a matter of weeks. The cycle of debt can be overwhelming. That’s where payday loan consolidation comes into play.

Next, take a closer look at payday loans and how debt consolidation works.

What Is Payday Loan Consolidation?

Payday loan consolidation means combining multiple existing payday loans under one new personal loan. In short, payday loan debt consolidation bands your loans together and allows you to repay them, typically at a lower interest rate and/or with a longer repayment period, usually one to seven years. Having one personal loan can be a great alternative to repaying individual payday loans. While payday loans are usually very short-term, if you do the math, their annual percentage rate (APR) can be almost 400% or in some cases higher.

How Payday Loan Consolidation Works

Here’s your quick 5-step guide to how to consolidate payday loans:

1.   Add up your payday loan balance, including fees.

2.   Compare debt consolidation interest rates and loan terms, as well as personal loan requirements.

3.   Apply for the loan that best suits your needs. Banks, credit unions, and online lenders may offer personal loans, which are typically unsecured loans, meaning you don’t need to provide collateral.

4.   Once you are approved for a personal loan, you receive a lump sum payment to pay off your payday lenders. Or your lender may pay off your payday loans directly.

5.   Make monthly payments on the personal loan until you pay it off completely. Setting up automatic payments so you don’t miss a payment can be a smart move.

Recommended: Payday Loan Requirements

When Payday Loan Consolidation Makes Sense

Debt consolidation — consolidating payday loans or other forms of debt such as credit card debt — is typically a smart move if you can lower the amount you are paying each month to pay down the debt. This might free up cash for you to use to cover other expenses or save so that a payday loan isn’t necessary in the future. Below, we’ll look at some of the benefits conferred by debt consolidation.

Benefits of Consolidating Payday Loans

Here are some advantages you might see if you can consolidate online payday loans or other forms of fast cash lending.

•   New interest rate: Consolidating your payday loans means you can get a new, lower interest rate, well below than the triple-digit APRs that payday loans typically carry.

•   Convenience: When you consolidate to a personal loan, you’ll have a single monthly payment, which is relatively easy to keep track of. You no longer need to juggle or worry about multiple payments.

•   Lower fees: You may get charged an origination fee (between 1% and 10% of the loan amount) with a personal loan, but these charges are typically much less than the cost of carrying payday loans.

•   Credit building: You might be able to build your credit score as you make regular, on-time monthly payments on your new personal loan. This can benefit you in the long run because it could give you opportunities to qualify for other loans at more favorable rates in the future.

Potential Downsides to Consider

Consolidating payday loans can help you cultivate a good credit score if you make your new loan payments in a timely fashion. But missing payments on your new personal loan can have the opposite effect, damaging your credit score. That is one downside to consider.

Another potential drawback of consolidating your debt is this: If you pay off your payday loans, and you don’t address the deeper issue of spending more than you are earning, you could find yourself taking out new payday loans — while also being responsible for paying down the personal loan debt. Any new borrowing should come with a close examination of your earning and spending habits.

Options for Payday Loan Consolidation

There are several options for payday loan consolidation, including debt consolidation loans, credit counseling services, and debt management plans.

Debt Consolidation Loans

You might want to consider a debt consolidation loan through a bank, a credit union, or an online lender. As noted above, a debt consolidation loan is a type of personal loan that allows you to pool many of your loan payments into a single loan payment, making it easier for you to keep track of your payments. You might also find that these financial institutions offer significantly lower interest rates than payday loans. This can result in lower monthly costs, which can be very helpful for those who are living paycheck to paycheck.

Check for the interest rate on your new loan and the length of time you’ll repay your debt consolidation loan to ensure you get a comprehensive understanding of how much you’ll pay.

Credit Counseling Services

Credit counseling services are nonprofit organizations that help you manage your debts. They may offer educational materials and advice after reviewing your situation in a consultation, educate you about money management, help you develop a budget, and understand your credit report and scores.

Debt Management Plans

Credit counseling agencies and certified financial planners (CFPs) can help you develop a debt management plan. They will walk through your financial situation and discuss several options, including how to handle unsecured debts like credit cards and personal loans. Agencies may take management of your debts and contact creditors to find out if they can:

•   Lower interest rates

•   Lower monthly payments

•   Stop late fees

They will let all your creditors know that they have taken over your accounts, which means your payments go to the agency instead of to your creditors.

A CFP can help you budget and explore options for restructuring and consolidating your debt.

Of course, you’ll pay fees for these professional services, so check with the agency or CFP how much you’ll pay. Be cautious about this decision, and check the reputation of an agency or financial professional carefully.

Alternatives to Payday Loan Consolidation

To avoid payday loans’ high costs, some alternatives to payday loans include:

Payday alternative loans: Payday alternative loans come from credit unions as an alternative to payday loans. Payday alternative loans (PALs) are divided into PALs I and PALs II. Credit unions offer $200 and $1,000 PALs I with a maximum 28.00% APR, with one- to six-month repayment terms. Credit unions offer PALs up to $2,000 and a maximum 28.00% APR, with one- to 12-month repayment terms.

Personal loans: Standard personal loans can offer funds at a significantly lower interest rate than payday loans, if you qualify. Bad-credit personal loans can be obtained by those who have a low credit score, and these loans do not require collateral. Unfortunately, these come with higher interest rates, but they’re not as high as payday loans.

Home equity line of credit (HELOC): A HELOC is a type of loan where you borrow against your home’s equity. Your home serves as collateral, which means the bank could seize your home if you don’t repay your loan. You can think of a HELOC as similar to a credit card. After your lender approves the amount you can borrow, you have a certain amount of time to withdraw up to the limit within the draw period. When the draw period ends (say, after 10 years), you’ll enter a repayment period, such as 10 or 20 years. HELOCs typically have much lower interest rates than payday loans.

Credit card cash advance: Cash advances are short-term loans that allow you to access money from the financial institution that backs your credit card. You can borrow money against your line of credit, though it’s important to check the fees and APR. A credit card cash advance is usually an expensive option.

Employer paycheck advances: Your employer may offer paycheck or payroll advances up to a limit, typically $1,000. You pay the loan back to your employer through future earned wages. Learn more about the repayment terms and details about the payment advance before you go that route.

Peer-to-peer loans: Peer-to-peer loans take a crowdfunding approach to borrowing money. Money comes from individual private investors instead of institutions, typically in the form of unsecured personal loans, but note that due to the nature of these loans, the government doesn’t provide insurance for them.

Borrowing from friends and family: Consider asking family and friends for a loan, but remember that not repaying a loan to family or friends can have lasting effects on your relationship.

Qualifying for Payday Loan Consolidation

You can qualify for payday loan debt consolidation by meeting credit and income verification requirements and by understanding the fees and interest rates, repayment terms, and schedules.

Credit Requirements and Income Verification

Here are the usual requirements: You must be 18 or older and have a valid ID, such as a driver’s license or passport, to get a consolidation loan. You must also prove your income through a pay stub or other document and that you have an active bank or credit union account.

Fees and Interest Rates

Payday debt consolidation loans also come with fees and interest. At the end of 2025, interest rates ranged from about 8.00% to 36.00%, depending on your creditworthiness, with an average of 11.12%. Origination fees are typically 1% to 10% of the loan amount.

Repayment Terms and Schedules

Along with a lower interest rate, you can also expect a longer repayment period with a payday consolidation loan compared to a standard payday loan. The term typically ranges from one to seven years with monthly payments.

Develop a Debt Repayment Strategy

Once you receive the money for the payday loan consolidation, you can pay off each payday lender (or the lender of your consolidation loan may do so for you). Then focus on paying off your personal loan. It’s vital to keep up on your personal loan payments, because missed payments can negatively affect your credit score.

Consider setting up automatic payments to avoid making missed payments, which also results in late fees. You might even get a discount (possibly between 0.25% and 0.50%) to set up automatic payments.

Create a Budget and Cut Expenses

Creating a budget can help ensure you won’t need another payday loan. Use a budget app or try a method like the 50/30/20 budget rule to keep track of your expenses and to determine where you can cut back, whether it’s eating out, purchasing shoes or clothes, a gym membership you never use, or other items you don’t really need.

Doing this can help you make your payday loan consolidation payments and meet all your other debt obligations. Staying on top of your finances in this way can be a path to paying off debt quickly.

Prioritizing Debt Payments

Consider prioritizing debt repayment for your personal loan for consolidation and also on other loans that you owe. Taking care of all types of debt you owe can set you up for financial success. Tackling all types of debts can help you succeed over time, so keep track of what you owe on the following:

•   Mortgage

•   Student loans

•   Auto loan

•   Home equity loan

•   Credit-builder loan

Recommended: Debt Payoff Guide

Build an Emergency Fund

Many experts recommend building an emergency fund to help protect against incurring future debts. “An emergency fund is intended to be used at a moment’s notice. You’ll hear that a healthy emergency fund should cover between three and six months’ worth of living expenses — rent or mortgage, bills, food, and other essentials. Since you never know when an emergency might happen, it’s best to keep your fund relatively liquid,” says Brian Walsh, CFP^® and Head of Advice & Planning at SoFi. You might put the money for an emergency fund into a high-yield savings account to earn a competitive interest rate.

If you have an emergency in the future, you can dip into your emergency savings instead of taking out a payday loan.

Avoid Payday Loan Debt in the Future

Payday loans are risky, and if you need money, they should be your last resort. Here are two steps you can take to help you sidestep this risk in the future.

Understand the Risks of Payday Loans

Payday loans may seem innocuous because you can get a quick infusion of cash without a credit check as long as you repay the loan balance on your next payday. Payday loans are small loans (usually $500 or less) that you must repay within 10 to 14 days of receiving the money. No biggie, right?

It’s true that you’ll get funds in your bank account quickly — usually within one business day. But the risks of payday loans occur when the lender assesses fees. Payday lenders don’t charge traditional interest rates — they usually charge a flat fee, between $10 and $30 for every $100 borrowed.

For example, a $500 loan could incur $150 in fees after the 10- to 14-day period. Some have interest rates of a whopping 600%.

Improve Financial Literacy

One of the best ways to improve your understanding and management of your money is to learn as much as you can about it. Developing financial literacy can help you make informed decisions about how to save money for emergencies, avoid debt, spend and budget wisely, and more. This, in turn, can help you avoid payday loans.

The Takeaway

If you’ve taken out payday loans, you may wonder if consolidating payday loans makes sense. Taking out a single personal loan can help you replace multiple high-interest loans with a single, lower-interest one. This can allow you to reduce the amount of interest you’ll pay over time and take better control of your finances. As you explore how to consolidate payday loans, look at interest rates and other loan terms from multiple possible lenders to find the best fit for you.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

FAQ

Can I consolidate payday loans with bad credit?

You may be able to get a payday consolidation loan with bad credit, but the interest rate may be higher than what you’d find with a higher credit score. Check with lenders to see whether you qualify for payday loan consolidation and at what interest rate.

What happens if I miss payments on a consolidated loan?

When you opt for a payday loan consolidation, your responsibility is to repay your loan. If you miss payments on a loan consolidation, you will likely incur late fees and could face a negative impact on your credit score. Keep making on-time, regular payments so your credit score doesn’t take a dip.

How long does payday loan consolidation take?

You can typically receive a personal loan fairly quickly, and the repayment term is usually between one and seven years.

Is payday loan consolidation the same as refinancing?

Payday loan consolidation and refinancing both lower the cost of borrowing money, but they are not exactly the same thing. Payday loan consolidation involves paying off two or more payday loans with a new debt consolidation loan, which is a personal loan. Refinancing usually involves replacing one loan (often a home mortgage) with a new loan that has a lower interest rate, longer or shorter repayment term, or other benefits.

Does payday loan consolidation hurt your credit score?

When you apply for a debt consolidation loan, a prospective lender will check your credit report. This typically results in a minor, short-term dip in your credit score. Long-term, having a loan consolidation and making consistent monthly payments should help your credit score.

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SoFi Loan Products
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Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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A college education is an investment in the future. But as with any investment, it’s important to consider what you’ll get in return — your return on investment (ROI) — to determine if the cost is worth it. Hence, college students and their parents weigh the cost of college against future earning potential, as well as intangibles such as friendships, network building, and soft skills.

This guide explores the “return on education” for bachelor’s degrees and offers insights into how to maximize the value of your college education.

Average Cost of a Degree

Choosing the right college is a multifaceted decision. Considerations include the school’s location, whether it offers programs that meet your interests, what the student culture is like, and, of course, tuition costs.

The price tag for college can be jaw-dropping. The average cost of college for an in-state student attending a four-year university is $27,146 per year (including living expenses). Students who attend private, nonprofit universities spend an average of $58,628 per year living on campus.

💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.

ROI by Education Level

You can determine your ROI by education level by looking at the ratio of the cost of your degree to your expected income once you graduate. Your return on education is much like a traditional ROI calculation, which looks at the ratio between net profit and cost from investing resources.

In this case, time and money are the resources you’re investing, and your future income is the profit. The ROI for your education will depend largely on how much you spend on your schooling, what type of job you get after school, and, to a certain extent, what you major in.

Median ROIs for a College Degree, per the Education Data Initiative

Education Level	20-year ROI	40-year ROI
Associate Degree	80.88%	545%
Bachelor’s Degree	142.4%	841.7%
Master’s Degree	84.78%	472%
Doctoral Degree	82.2%	623.5%
Professional Degree	554.5%	2,248.6%

Associate Degree ROI

Students can typically complete associate degrees, which are often offered at community colleges, in one to two years, making them more affordable than four-year degrees. According to data from the Education Data Initiative, the ROI for an associate degree is 80.88% after 20 years.

Bachelor’s Degree ROI

Bachelor’s degrees typically take students four years to complete. According to the Education Data Initiative, the ROI for a bachelor’s degree is 142.4% after 20 years. However, this estimated ROI can vary greatly based on the major you pursue. For example, computer science degrees offer an ROI of 716.6%.

Master’s Degree ROI

A student can obtain their master’s degree after receiving their bachelor’s degree. This degree allows them to specialize in a specific area of interest, such as a master’s in business administration, or MBA. The ROI for a master’s degree is 84.78% after 20 years, according to the Education Data Initiative.

Doctoral Degree ROI

A doctoral degree is generally the most advanced degree one can get in a particular field. Doctorates can take up to eight years to complete, though the exact timeline will vary depending on factors such as the program type, structure, and research conducted by the doctoral candidate. The estimated ROI for doctorate degrees is 82.2% after 20 years, according to the Education Data Initiative.

Professional Degree ROI

Professional degrees are advanced degrees that prepare a graduate to work in a particular field, such as law or pharmacy. After 20 years, the ROI for a professional degree is 554.5%, according to the Education Data Initiative.

Highest-Earning Degrees

The return on education will vary depending on the degree program you choose. For example, a student with a computer science degree may earn more than an English major. There are exceptions, but it’s a good idea to understand the norm for particular fields. Below are some of the highest-earning degree programs.

Associate Degree

An associate degree takes about two years to complete and can often be finished at a community college for significantly less than it may cost to get a four-year degree. Associate degrees often allow students to specialize in a specific trade or field, and, in some cases, this specialization can lead to a high-earning career.

One of the top-earning post-associate degrees is in air traffic control. According to the Bureau of Labor Statistics (BLS), air traffic controllers earn a median income of $144,580.

Dental hygienists, MRI technicians, and funeral service managers all earn an average salary of $70,000 or higher, making these associate degrees with high earning potential, as well.

Bachelor’s Degree

According to Best Colleges, bachelor’s degrees with the highest earning potential include chemical engineering, computer engineering, computer science, finance, and business analytics.

For example, in 2024, chemical engineers earned a median salary of $121,860. Financial analysts earned a median salary of $101,910per year, according to the BLS.

Certifications

Some people may consider adding a certification to their resume to boost their earning potential. Professional organizations often award certifications for specific skill sets. Some top-earning, in-demand certifications include those in project management and data engineering.

Recommended: Guide to Student Loans for Certificate Programs

Bachelor’s Degree ROI by Major

The ROI can vary quite a bit based on the type of bachelor’s degree pursued. Computer science degrees have some of the best ROI for bachelor’s degrees — about 1,752.5% over 40 years, according to the Education Data Initiative. Below is a list of majors and their estimated ROI after 40 years:

•   Business finance —1,842.3%

•   Business accounting — 1,286.6%

•   Electrical engineering —1,082.3%

•   Biology — 225.0%

•   Communications —441.8%

•   Architecture — 502%

•   Fine Art — 244.1%

Consider What Can’t Be Measured by Money

Yes, going to college or pursuing other higher education opportunities can be expensive. But in addition to the cost and potential boost in earning potential, there are a variety of intangible benefits that students can’t measure in dollars. For example, college students living on campus can gain a newfound independence and develop important life skills.

Plus, many colleges have strong alumni networks that can help students find jobs after graduating. Students have the chance to get to know themselves better while making lifelong friends.

Recommended: How to Budget as a College Student

Controlling Costs

One way to improve ROI is to decrease the amount you are paying for school. This could be particularly useful if you already know you want to pursue a career in a relatively low-paying field.

Scholarships

You can offset the cost of tuition by looking for scholarship programs that help pay your tuition and other college expenses. Many schools offer need-based financial aid to families who might otherwise struggle to pay tuition costs. In some cases, you could even get a full ride.

You can find scholarships by looking at your school’s financial aid website, connecting with your guidance counselor, or reviewing databases or online scholarship search tools.

In some cases, you may be able to apply for unclaimed scholarships to help supplement the aid you have already received.

Grants

Students may qualify for grants directly from their school or through federal financial aid. Grants typically do not require repayment, so they can be an incredibly helpful addition to a student’s financial toolkit when paying for college. Pell Grants are one type of grant awarded by the federal government to students who demonstrate exceptional financial need.

Pell Grants are available to undergraduate students. However, to maintain eligibility for a Pell Grant, undergrads must also meet satisfactory academic progress requirements.

Student Loan Forgiveness Programs

If you need to take out student loans to help pay for college, keep an eye on your terms and interest rates to help keep costs down. If you take out federal loans and plan to work for certain nonprofits or government organizations, you may be eligible for loan forgiveness under the Public Service Loan Forgiveness (PSLF) program. After making 10 years’ worth of qualifying monthly payments, the remaining balance of your loan may be forgiven through this program.

Private Student Loans

Private student loans don’t qualify for federal benefits such as PSLF, but they can be helpful tools for students who have exhausted their federal financial aid.

If you’re interested in paying for college or another higher education degree with a private student loan, take the time to shop around and review interest rates, terms, and other fees or benefits that lenders offer.

Employer Support After Graduation

Finally, some employers may also help you pay back your student loans as part of a benefits package. Consider working for an employer who offers these benefits.

Recommended: Finding Jobs That Pay Off Student Loans

The Takeaway

College students can estimate the return on their educational investment by comparing the cost of their degree to their lifetime earnings. Though important, the money you’ll eventually earn isn’t the only thing you should consider when choosing a college. Getting a bachelor’s degree can help you acquire skills and expand your horizons in ways that aren’t directly related to your degree or job prospects.

When you decide on the right school for you, take the time to consider all your options — including scholarships, grants, federal and private student loans, post-graduation repayment programs, and other sources of public and private funding — to help you achieve your education and career goals.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

What is the average return on investment for a college degree?

The average t ROI for a college degree varies by field, but generally, bachelor’s degree holders earn significantly more over their lifetime than those with only a high school diploma. On average, the ROI for a college degree ranges from 9% to 10%, but it can be higher depending on the major and the institution.

Which degree has the highest return on investment?

Degrees in fields such as engineering, computer science, and technology typically have the highest ROI. These degrees often lead to high-paying jobs with strong job security and growth prospects, resulting in a significant lifetime earning advantage compared to the cost of education and making them highly valuable investments.

Is a bachelor’s degree a good investment?

A bachelor’s degree is generally a good investment, as it can lead to higher lifetime earnings, greater job stability, and more career opportunities than having only a high school diploma. However, the ROI depends on the chosen field, the cost of education, and individual career goals and outcomes.

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Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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