Nov
21
2025
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8 Tips for Asking a Professor for a Letter of Recommendation

By | Debt Payoff, Student Loans, student_loan | Comments Off on 8 Tips for Asking a Professor for a Letter of Recommendation

While a college education can help prepare students for life, taking advantage of the professional network college offers can help launch your career. Whether trying to land a summer internship, get that first job, or apply to graduate school, a letter of recommendation from a professor can be helpful.

Although requesting this is common practice, it can still feel nerve wracking to broach the subject. Keep reading to learn helpful tips to receive a glowing letter of recommendation from a professor.

Key Points

•   Choose a professor who knows you and your work well, ideally someone familiar with your strongest projects and growth.

•   If possible, ask a professor who specializes in your field, as their expertise and reputation can strengthen your application.

•   Make a personalized, specific request, reminding them of your coursework and goals, and provide details about the job or program.

•   Support them with materials like your resume, transcripts, or personal statement, and give clear instructions on deadlines and submission.

•   Show professionalism by asking well in advance, providing updates, and expressing gratitude, helping build an ongoing mentor relationship.

1. Asking a Professor Who Knows You and Your Work

There are several factors to consider when deciding who you’ll ask for a letter of recommendation for a job or a college internship. Taking stock of which professors actually know your interests and goals, not just your name, is something to consider right away.

A strong letter of recommendation from a professor can involve praising a student’s personal character and highlighting their goals and ambitions. For this reason, choosing a professor you’ve personally interacted with, whether through class discussions or during office hours, could be beneficial.

If you’ve taken several courses with a professor, they may be able to showcase how you’ve grown throughout your time in college.

Since the professor will also be attesting to your academic merit, it can be helpful to start by identifying who has seen samples of your strongest work throughout college. For example, a personal essay or in-person presentation that earned a strong grade might indicate that a professor valued your work.



💡 Quick Tip: Ready to refinance your student loan? You could save thousands.

2. Choosing a Professor Who Specializes in Your Field

Although a letter of recommendation is foremost about your own skills and attributes, also of benefit can be a professor’s credentials within an industry or academic field you are targeting.

A letter of recommendation from an esteemed and notable professor could help you stand out in a competitive group of applicants.

Many professors have built up extensive networks from academic conferences and working with faculty at other universities and in the private sector.

Though they may not have contacts at the company, organization, or university you’re applying to, their advice and connections in a specific sector or academic discipline could prove valuable as you begin your job search. As academic professionals, they may have insight on the return on education for different graduate degrees and careers.

Often, jobs or graduate school applications require submitting more than one letter of recommendation. Choosing a combination of references who can highlight your strengths and character and carry respect in your desired field could further enhance your candidacy.

Recommended: 6 Ways to Save Money for Grad School

3. Asking in Person, if Possible

Given the importance of the request, asking in person can show that you’re serious about your future and respectful of a professor’s time.

For students currently enrolled in school, finding time to ask a professor for a letter of recommendation may be as simple as making an appointment during their office hours.

If you’re studying abroad or you’re currently navigating life after college, reaching out via email may be your only feasible option for starting the conversation. To further demonstrate your commitment, you might ask to arrange a phone or video call.

4. Making a Personalized and Specific Request

The average college has a student to faculty ratio of 18-to-1, so it’s not uncommon for professors to have several students ask for letters of recommendation each year. Still, that doesn’t mean every request is guaranteed a response or agreement to receive a recommendation.

Out of consideration for a professor’s busy schedule, making a request that’s tailored to them and clearly outlines what you need may increase your chances of success.

To personalize the request, consider reminding them which of their courses you took, a key project or assignment you completed, and how they influenced your academic and career goals. Next, providing a concise explanation of the position or program you’re applying for and what it means to you is an opportunity to convey your own professionalism and passion.

Since writing a letter of recommendation is a favor, sending a courteous request that allows a professor to opt out could help avoid a lukewarm reference. A well-crafted request makes it easy for the professor to quickly decide if they have enough knowledge about you and the position to write a letter of recommendation.

Recommended: Student Debt Guide

5. Providing Information to Write the Recommendation

Even if you have a strong relationship with a professor, the quality of the recommendation can benefit from supplemental information. For instance, providing a resume, college transcripts, personal statement, and a sample of work can help jog their memory and give them a blueprint of your experience and accomplishments to draw from.

It can be helpful to include a job description or, for a graduate program, admissions information. This could help a professor connect your academic knowledge and experience to the job or program’s desired qualifications and skills.

This is also the time to provide information and guidance for submitting a letter of recommendation. Some typical considerations to include are where to send the letter, any relevant deadlines, and to whom it should be addressed.

6. Giving Plenty of Notice

Asking your professor several weeks, if not months, before the recommendation is due can convey respect and appreciation for their time and effort and help ensure submission deadlines are met. Also, it can give you time to regroup and consider other options if a professor or two declines.

7. Keeping Them Updated Though the Process

Professors typically have busy schedules, so they probably won’t keep thinking about your job search or grad school application after the letter of recommendation has been written and sent. Letting them know when you have interviews and other updates can help them be prepared should they receive a call from an employer or admissions office.

Recommended: Refinancing Graduate Student Loans

8. Saying Thanks and Staying in Touch

Besides creating good karma, thanking a professor is another opportunity to foster a good relationship with them. They might become a mentor to you, especially if you’re pursuing a job or education in the same field.

You might apply to a higher-paying job or a graduate program in the not-so-distant future and want to ask for another recommendation from the same professor.

Instead of starting from scratch each time you apply for a new job or after you get your master’s degree, you may want to periodically update academic and professional references along your career path and as your goals change.

Not only can this make for an easier request and stronger recommendation next time around, it may lead to more professional opportunities and meaningful relationships.

The Takeaway

Asking a professor for a letter of recommendation could be helpful when you’re trying to get a job after college or apply to grad school. Choosing a professor that knows you and your work, asking them respectfully far in advance of the deadline, and giving them clear details and instructions about what’s needed, could make all the difference in getting a strong recommendation.

As you strive to land a job or advance in your schooling, you’re likely also starting to think about looming student loan payments. Refinancing your student loans may be one option to help with repayment, especially if you can qualify for a lower interest rate to save money.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.


With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

How well do you need to know a professor to ask for a letter of recommendation?

A professor that knows you and your work can write a strong letter that speaks to your achievements and personal character. You could choose a professor you’ve had more than one class with, for instance, or one that has seen examples of your best work, whether it’s an essay, a special project, or a difficult test that you aced.

How far in advance should you ask a professor for a letter of recommendation?

It’s best to ask a professor several weeks or months in advance of the deadline for a letter of recommendation. That shows you are respectful and appreciative of their time and efforts, and it gives them plenty of time to submit the letter before the due date.

What if a professor declines to write a letter of recommendation?

Be gracious and professional. Thank them for their time and consideration and then move on to another professor with your request.

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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.

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Nov
21
2025
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Personal Loan vs Personal Line of Credit

By | Budgeting & Goals, Debt Payoff, personal_loan | No Comments

When comparing a personal loan vs. a personal line of credit, both sources of funding can be used for a variety of expenses and typically require a hard credit check during the application process. However, there are also differences: specifically, in how the loan funds are disbursed to the borrower and how the credit is repaid.

Here, learn more about deciding whether a personal loan or a personal line of credit might be right for you.

Key Points

•   Personal loans offer a lump sum with fixed interest and payments, ideal for large, one-time expenses.

•   Personal lines of credit provide flexible, ongoing borrowing with interest rates and fees assessed.

•   Responsible borrowing includes timely repayments, low credit utilization, and avoiding high debt levels.

•   Consider financial needs, interest rates, fees, and credit impact when choosing between options.

•   Use calculators to compare total costs and make the best financial choice.

What Is a Personal Line of Credit and How Does It Work?

A personal line of credit (LOC) is a type of revolving credit similar to a credit card. But funds are typically accessed by writing checks provided by the lender or requesting a funds transfer to your checking account instead of by using a card.

An LOC typically allows the borrower to withdraw funds repeatedly, up to the credit limit. Any funds that are withdrawn are subject to repayment with interest. When they are repaid, they can be accessed again up to your particular credit limit. There may be a limit on the number of years the line of credit is available.

Additional points to know:

•   Some lenders may assess fees associated with an LOC. There may be a maintenance charge for inactive accounts. There may also be ongoing fees, monthly or annual, even if the LOC is being used. Some other expenses may include application fees, check processing fees, and late fees, among others. It’s important to be aware of any potential fees before you sign an LOC agreement.

•   Personal lines of credit are usually unsecured, although you may be able to put up collateral to get a lower interest rate. A home equity line of credit, or HELOC, is an example of a secured line of credit.

•   Typically, a personal LOC will be offered by a bank or credit union, and you might have to have another account with the lending institution to be considered for an LOC.

•   If your LOC is unsecured, the interest rate will probably be variable, which means it could go up or down during the loan’s term, and your payments could vary. But you’ll only be charged interest on the amount you withdraw. If you’re not using any LOC funds, you won’t be charged interest.

If you expect to have ongoing expenses or if you have a big expense (like a wedding or home renovation) but don’t know what your final budget will be, this type of borrowing might be a useful financial tool.

A personal LOC also may be the right fit if you need some flexibility with your borrowing. For example, self-employed workers who know they’ll be paid by a client but aren’t sure exactly when, can tap into their line of credit to pay expenses while they wait. They can pay that money back when they receive payment from the client, and they won’t have to use high-interest credit cards or borrow from other savings to make ends meet.

Of course, there are downsides to that easy-to-access money. Here’s a closer look:

•   Since unsecured lines of credit are considered by lenders to be riskier than their secured counterparts, it can be more difficult to qualify at a favorable interest rate.

•   Once you have access, it may be tempting to use the funds for purposes other than originally planned. Keeping in mind the intended purpose for the funds may help you stick to it and not use the funds for other purchases.

Pros and Cons of Personal Lines of Credit

Having funds that can be accessed as needed can be helpful. But there are also some drawbacks to consider. Take a look at how the pros and cons stack up for personal lines of credit.

Pros of Personal Lines of Credit

•   Easy access to funds.

•   Open-ended vs. set distribution of money.

•   Minimal limits on use of funds.

•   Can be useful for ongoing expenses.

Cons of Personal Lines of Credit

•   May have a higher interest rate than other forms of credit.

•   Typically are unsecured, so may be more difficult to qualify for than other forms of credit.

•   Interest rate could be variable, presenting a budgeting challenge.

•   Ease of access can be tempting to use for impulse shopping.

What Is a Personal Loan and How Does It Work?

A personal loan, on the other hand, is a fixed amount of money disbursed to the borrower in a lump sum. If the loan has a fixed interest rate, as is typical for personal loans, the payments are in fixed installments for the term of the loan. If the loan has a variable interest rate, the monthly payments may fluctuate as the interest rate changes in accordance with market rates.

Because personal loans typically have lower interest rates than credit cards, they’re often used to pay off other debts such as home and car repairs or medical bills, or to consolidate other higher-interest debts such as credit card balances into one manageable — and potentially lower — monthly payment.

Here are some more ways these loans are often used:

•   A personal loan can be a helpful tool for debt consolidation. If you can qualify for a personal loan that has a lower interest rate than your other outstanding debts, you may be able to save money in the long run by consolidating those debts. In order for this financial strategy to work, it’s important to stop using the old sources of credit to avoid going deeper into debt.

•   A personal loan also could be a suitable choice for paying for a wedding or home renovation. But it’s important that you feel confident about being able to repay the loan on time and in full. If you don’t responsibly manage a personal loan — or any kind of debt, for that matter — your credit can be adversely affected.

•   You can apply for a secured or unsecured personal loan. A secured loan, which is backed by collateral, is typically considered less of a risk by lenders than an unsecured loan is. Collateral is an asset the borrower owns — a vehicle, real estate, savings account, or other item of value. If the borrower fails to repay a secured loan, the lender has the right to take possession of the asset that was put up as collateral.

Here are a few more points about how the process of getting a personal loan can work:

•   An applicant’s overall creditworthiness will be considered during the approval process. Generally, an applicant with a higher credit score will qualify for a lower interest rate, and vice versa.

•   Some lenders charge personal loan fees such as origination fees or prepayment penalty fees. Before signing a loan agreement, it’s important to be aware of any fees you may be charged.

Pros and Cons of Personal Loans

When you need a set amount of money for an expense, a personal loan can be a good choice. Along with the benefits of using this financial tool also come a few drawbacks to consider.

Pros of Personal Loans

•   May be a good choice for large, upfront expenses.

•   Typically have fixed interest rates.

•   Steady payments may be easier to budget for.

•   May have a lower interest rate than credit cards.

Cons of Personal Loans

•   Unsecured personal loans may have higher interest rates than other forms of secured credit.

•   May need a higher credit score to qualify for lower interest rates.

•   If not used responsibly, it can add to a person’s debt load instead of alleviating it.

•   May have fees.

Major Differences Between Personal Lines of Credit and Personal Loans

When you’re looking for the right source of funding for your financial needs, it can help to compare different types. Here are some specifics to consider when looking at personal LOCs and personal loans.

Personal Line of Credit

 Personal Loan
Typically has a fixed interest rate More likely to have a variable interest rate
Fixed interest rate may make it easier to budget payments Variable interest rate may present a budgeting challenge
Fixed, lump sum Open-ended credit, up to approved limit
Interest is charged during entire loan term Interest is only charged on withdrawn amounts
Revolving debt Installment debt

Considering the Type of Debt

When you’re thinking about applying for a personal LOC or a personal loan, it’s important to consider the effect borrowing money can have on your credit score. If you borrow money without a repayment plan in place, you could run into trouble no matter which borrowing option you go for. But each is looked at differently by the credit bureaus.

A personal LOC is revolving debt, which means it will factor into your credit utilization ratio — how much you owe compared to the amount of credit that’s available to you. This can count as the second most weighty factor (at 30%) toward your score.

For a FICO® Score, keeping your total credit utilization rate below 30% is recommended. That means if your credit limit is $15,000, you would use no more than $4,500.

•  Using a large percentage of your available credit can have a negative effect on your credit score. And lenders may see you as a high-risk applicant because they may assume you’re close to maxing out your credit cards.

•  Using a small percentage of your available credit can work in your favor. If your credit utilization ratio is low (under 10%), it signifies to potential lenders that other lenders have determined you to be a good risk, but you don’t need to use the credit that’s been extended to you.

•  Having a low credit utilization rate by using just a little of your available credit could actually have a more positive effect on your credit score than not using any of it at all. Lenders generally look for signifiers of a healthy relationship with credit.

A personal loan is installment debt and isn’t considered in your credit utilization ratio. In fact, if you pay off your revolving debt with a personal loan, it potentially can lower your credit utilization ratio and have a positive effect on your credit score. A personal loan also can add some positive variety to your credit mix — something else that’s calculated into your credit score.

Personal LOC or Personal Loan: Which Is Right for You?

Before you decide to take out a line of credit or a personal loan, it’s wise to compare lenders. Look at the annual percentage rate and whether it’s fixed or variable. You can also take into account any fees you might have to pay, including origination fees, annual fees, access fees, prepayment penalties, and late payment fees.

Estimating the total cost of the loan until it’s paid in full, including the principal loan amount, interest owed, and any fees or penalties you could potentially be charged, will help you figure out how much the loan will actually cost you.

You might use an online personal loan calculator to help you assess these total costs.

The Takeaway

Deciding when and how to borrow money can be a tough decision. Personal loans and personal lines of credit each have their pros and cons. Personal lines of credit allow you to borrow up to a credit limit, while personal loans disburse a lump sum. Interest rates, fees, and other features may vary. It’s wise to consider your needs and options carefully, reading the fine print on possible offers.

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 NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

Is it better to get a loan or use a line of credit?

Loans can be better suited for fixed expenses or one-time needs, while lines of credit can offer flexibility for repeated borrowing. Loans often carry lower interest rates but may involve higher upfront fees; lines of credit, on the other hand, may cost more over time due to variable rates and fees.

What are the downsides of a line of credit?

The interest rates for a personal line of credit may be higher than those charged on other sources of funding, and if the rate is variable, that can make budgeting more difficult. Also, there can be fees, such as an annual or monthly maintenance fee and transaction fees.

Does a line of credit hurt your credit score?

A line of credit can involve a hard credit pull when you apply, which can temporarily lower your credit score by several points. After that, how you manage your line of credit can determine how your credit score is impacted. Keeping your usage low and always paying on time can help build your score. Taking on too much debt and missing your payment due dates can lower your score.

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.


*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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21
2025
A woman in her college library taking a break from studying and looking up information on student loan refunds on her phone.

Guide to Student Loan Refunds

By | Debt Payoff, Student Loans, student_loan | Comments Off on Guide to Student Loan Refunds

It’s a common scenario for students (and sometimes their parents) to borrow student loans to help cover the costs of college. Tuition, housing, textbooks, and incidentals can really add up. But what happens if they take out more in loans than they actually need? In that case, they may receive a student loan refund.

A student loan refund is money that the borrower receives when the loan amount exceeds the amount of money required to pay for qualifying education expenses. The overage amount would come to them as a student loan refund in the form of direct deposit or a check.

Read on for more information on what a student loan refund is and what to do if you receive one.

Key Points

•   A student loan refund may be issued if a borrower took out more in student loans than they actually needed to pay for college expenses like tuition and fees.

•   Student loan refunds may be sent as a check or a direct deposit in the borrower’s bank account.

•   A college has 14 days to issue a refund payment if a student has a credit on their account.

•   In general, the school will contact the borrower to notify them that a refund will be sent to them.

•   Students may keep a student loan refund check, in which case the amount will need to be repaid with interest later, or they can return the refund.

What Is a Student Loan Refund?

To understand what a student loan refund is, it can be helpful to first look at what college financial aid is and how it is distributed to students. When a student or their parent pursues federal financial aid, such as federal student loans, that aid is distributed via a credit to the student’s account at their college.

Private student loans are distributed differently depending on the lender. Some private lenders may deliver the funds directly to the student. Others may choose to credit the student’s college account, similar to how federal aid is distributed.

Private or federal, this is where student loan refunds may come into play. Here’s how:

•  Student financial aid can cover costs such as tuition, room and board, and fees. On occasion, however, an aid distribution can lead to there being an additional credit in the student’s college account.

•  This happens if there is any excess money after paying for the necessary expenses. In that case, the student or parent will receive a student loan refund via a check or in the form of a direct deposit to their bank account.

•  An example of how this might happen is that funds are sent to the student’s school, where the student’s account only reflects tuition. But the amount was also intended to cover textbooks, which the student will buy separately. The overage in the student loan (the part meant to pay for the books) could then be sent to the student.

•  Or the additional amount might be a case of the student having borrowed more than they actually needed to afford their school costs for a particular time period. Perhaps they signed up for a class that wound up being canceled and are now taking a different class that carries fewer credits and less expense.

How to Get a Student Loan Refund

Whether a student or a parent takes out a federal student loan, the process of getting a student loan refund will generally look similar. Each semester, the school will typically review student accounts to determine if there are any eligible credit balances that can be refunded to the student.

If that is the case, here are some details to know:

•   The school has 14 days to issue a payment to the student if there is credit on their account. In some cases, schools may determine that credit balances should be applied to students’ future costs at the university.

•   In some cases, if the credit is not a result of the student receiving financial aid, the school may require that students request a refund. Follow the refund request process as determined by the school you attend.

•   In general, the school in question will contact the student or their parents in writing any time they distribute any loan money. The loan servicer will also provide confirmation that the loan money was delivered.

•   Alongside this notice, borrowers will generally also receive information on how to cancel part or all of the student loans. If the borrower realizes they don’t need the full loan amount, this may be an option they want to pursue.

•   Know that any amount refunded is still considered part of the total amount borrowed. So, borrowers who receive a portion of their student loans refunded would still be responsible for repaying that amount, with interest, if the refund is not canceled.

•   When it comes to federal student loans vs. private loans, the borrower can cancel all or part of their loan within 120 days of receiving it. They will incur no interest during this time and no fees will be charged.

The process of getting student loan refunds may vary when dealing with private lenders.

•   If the funds were received by the student to pay for qualified expenses, such as textbooks, the student can go ahead and use it for such purchases (more on this below).

Recommended: How and When to Combine Federal Student Loans and Private Loans

Common Student Loan Refund Mistakes

There are a few common pitfalls regarding private and federal student loan refunds that students and their parents should avoid. These include:

Moving Too Slow

Requesting a student loan refund is a bit of a time-sensitive process.

•   If someone realizes they won’t need the full amount of a federal student loan awarded before the funds are disbursed, they can actually request the school cancel the check or deposit before the need to process a refund even arises.

•   If the borrower realizes after distribution of a federal student loan that they don’t need all or any of the funds, they have 120 days after the loan disbursement date to return the funds without incurring interest or fees.

•   If a borrower misses both of these opportunities, the process of working with their school’s financial aid office to return the funds can become more complicated and time-consuming.

Not Establishing a Paper Trail

When making a student loan refund request, it may be a good idea to keep a paper trail of all requests and communication in order to establish a clear history of a desire to return the unused funds, if that is your situation. If things get lost in translation (which could happen), having a paper trail can be extremely helpful.

Overrelying on Student Loans

Some students and their parents might lean too heavily on student loans and may be able to get a bigger refund if they can find another way to finance any qualified education expenses. Student loans can be used to pay for academic and living expenses for the student while they’re in school.

However, pursuing other forms of financial support, such as a work-study program, can allow students to send more of their aid funds back, which will leave them with fewer loans when they graduate.

While it can be tempting to use a student loan refund to cover extra expenses like clothing and transportation — the less that is borrowed, the less that will be owed after graduation.

Just be sure that, if you receive a larger loan disbursement than what you actually need, you don’t wind up spending it on, say, dining out or entertainment while in school. While those activities are part of college life, paying for them with loan funds could be a misuse of your financial aid.

Recommended: What Happens If You Just Stop Paying Your Student Loans?

What to Do With a Student Loan Refund

When a student or their parents get a student loan refund, they have two main options. They can keep it or return it.

Keep the Student Loan Refund Check

The first option is to keep the refund. This money can be used as the borrower sees fit. Borrowers aren’t required to submit proof of what they spent the funds on which can make it tempting to spend the refund on expenses that aren’t necessarily required for education purposes.

Keep in mind, as noted above, that spending the funds on nonqualified expenses could be considered fraud and is not recommended. While it may feel appealing in the moment to use the funds, it may not be the wisest decision. Additionally, a student loan refund is still money that needs to be repaid with interest, so keeping that money may also not be in your best interest from a financial perspective either.

Return the Student Loan Refund Check

If the funds aren’t needed to pay for school, returning the refund check may be the most beneficial choice in the long run. Because, as mentioned, the money will have to be paid back (with interest) and spending it on unnecessary expenses can be quite a disservice to the borrower.

For details on returning your student loan refund check, contact the school’s financial aid office. If the borrower chooses to keep the student loan refund check or misses the deadline to return it, there are still some next steps available to them. One such option is to make a payment on their student loan balance.

Even though federal student loans don’t require payment until the student graduates, this can be one way to cut down student loan debt. The borrower can also use those funds for expenses in the next term and as a result, can choose to borrow less money for that term.


💡 Quick Tip: If you have student loans with variable rates, you may want to consider refinancing to secure a fixed rate in case rates rise. But if you’re willing to take a risk to potentially save on interest — and will be able to pay off your student loans quickly — you might consider a variable rate.

Refinancing Student Loans

Now, imagine that all your hard work has finally paid off. It’s time to cross that graduation stage. Once graduation day rolls around, students and their parents will begin to think about how they want to manage and pay off their student loan debt.

One option that can potentially lead to saving money on interest is to refinance student loans.

When someone refinances a student loan, they get a new private loan at a new interest rate and/or a new term. If a borrower initially had more than one student loan, refinancing leaves the borrower with only one monthly payment to make instead of multiple ones. The borrower might also qualify for a lower interest rate or choose a lower monthly payment for a longer term.

Keep in mind that if you refinance with an extended term, you may pay more interest over the life of the loan. Also know that if you refinance federal loans, you will forfeit federal benefits such as forgiveness and student loan deferment. For these reasons, refinancing may not be the right choice for all borrowers.

The Takeaway

If there are funds from student loans left over after all tuition and fees are paid, students may receive a student loan refund check. This check can be used to pay for other educational expenses, or it can be returned.

Keep in mind that unless the refund is returned, the money will need to be repaid with interest. Refinancing student loans can be an option for a borrower to explore when it’s time to start paying back what they have borrowed.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.


With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Why did I receive a student loan refund check?

It’s likely that you received a student loan refund check because the amount you borrowed in student loans exceeded the expenses your college billed you for, including tuition and fees. You can check with your school’s financial aid office to find out exactly why you received the refund.

When should I expect my student loan refund check?

Typically, borrowers will get a student loan refund within 14 days after the financial aid office at their school has applied the loan funds to their qualified education expenses and then processed the credited amount. A check will likely take longer to receive than a refund that’s directly deposited in the borrower’s bank account.

How do I know if I got a student loan refund?

Your school should notify you that you are getting a student loan refund. You can also check your account on your school’s online portal — the information should be listed there. Finally, you can contact your school’s financial aid office directly and ask them whether you are getting a refund.

SoFi Student Loan Refinance
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.

SOSLR-Q425-019

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Nov
20
2025
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PA School Debt Repayment Strategies

By | Debt Payoff, Student Loans, student_loan | Comments Off on PA School Debt Repayment Strategies

The decision to become a physician assistant, or PA, can lead to a rewarding career. PAs work at hospitals, medical offices, nursing homes, retail clinics, community health centers, and in the federal government.

Becoming a PA often means taking on student loans, however. Here’s what you need to know to help decide whether PA school is worth the debt.

Key Points

•   Physician assistants who work in a qualifying public service job for an eligible employer, may qualify for Public Service Loan Forgiveness after 120 payments.

•   Current income-driven repayment plans offer forgiveness after 20 to 25 years, with a new Repayment Assistance Program starting in 2026 that offers forgiveness after 30 years.

•   The National Health Service Corps provides eligible PAs serving in high-need communities awards of up to $75,000 for student loan debt.

•   Many states offer Loan Repayment Assistance Programs for PAs working in underserved areas for a specific time commitment.

•   Effective budgeting strategies and refinancing may help some borrowers manage student loan debt more efficiently.

Average Cost of PA School

The average cost of PA school is approximately $95,165 for the 27-month PA program at an in-state school and $103,660 for an out-of-state school, according to the latest data.

Before sticker shock sets in, the average salary of certified PAs in 2024 was $134,000 per year, according to the American Academy of Physician Associates. PAs working in emergency medicine, one of the highest paying areas, averaged a median annual salary of $146,000.

Physician Assistant (PA) School Repayment Options

Fortunately, there are options available for PAs struggling with student loan debt. One is the federal government’s Public Service Loan Forgiveness (PSLF) program, which is available to those working in public service who are employed by a qualifying government or not-for-profit organization. Currently, PSLF forgives the remaining balance on federal Direct Loans after 120 qualifying payments under a qualifying repayment plan.

Another option for PAs is an income-driven repayment plan. Changes are coming to these plans in mid-2026 as a result of the big domestic policy bill that was signed into law in the summer of 2025

Until then, there are currently three plans to choose from — Income-Contingent Repayment (ICR), Pay As You Earn (PAYE), and Income-Based Repayment (IBR) These plans base a borrower’s monthly payments on their discretionary income and family size. Under one of these plans, PAs could receive student loan forgiveness after 20 or 25 years of repayment.

However, for borrowers taking out their first PA loans on or after July 1, 2026, there will be only one income-driven repayment plan available — the Repayment Assistance Program (RAP). On RAP, payments range from 1% to 10% of adjusted gross income for up to 30 years. At that point, any remaining debt will be forgiven. If a borrower’s monthly payment doesn’t cover the interest owed, the interest will be cancelled.


💡 Quick Tip: Some student loan refinance lenders offer a no-required-fees option, saving borrowers money.

Other Payment Programs

There are also federal and state programs that reimburse health care workers in underserved areas, which are called Health Professional Shortage Areas (HPSAs). For example, under the National Health Service Corps Loan Repayment Program, eligible PAs who serve full-time for two years in a high-need community in a HPSA may receive an award of up to $75,000 for their student loans.

In addition, many states offer Loan Repayment Assistance Programs (LRAPs) for medical professionals, including PAs, who serve in HPSAs. These programs vary in requirements and award amounts. You can search the Association of American Medical College’s database to see what may be available in your state.

Planning for the Future

One way to help manage PA school debt is to build a budget — and stick to it. Ideally, a budget can help you take control of your money and make sure you have enough to repay your loans each month.

A simple way to create a budget is to calculate your total income. Next, list out all of your necessary expenses, which include things like rent or mortgage payments, groceries, car payments, and student loan payments.

Then, list your discretionary expenses, such as entertainment, gym memberships, and clothing. Once you have that information, choose a budgeting system, such as the 50/30/20 method, in which you allocate 50% of your income to necessary expenses, 30% to discretionary expenses, and 20% to saving, such as for an emergency fund or retirement.

Refinancing School Debt

If a borrower’s student loan debt reaches a point where making progress on repaying the loans feels nearly impossible, federal student loan repayment and forgiveness programs either don’t apply or aren’t the right fit, or personal loans are involved, then refinancing with a private lender might be an option to consider.

With student loan refinancing, borrowers get a new loan, which is used to pay off one or more of their existing loans. In addition to combining multiple loans into one, qualified borrowers may also get a better interest rate through refinancing, reducing their monthly payment and the amount they pay in interest over the life of the loan, assuming the loan term does not change.

However, refinancing federal student loans means a borrower is no longer eligible for federal benefits such as forgiveness and income-driven repayment. Make sure you won’t need these programs before moving ahead with refinancing.

Recommended: Student Loan Refinancing Calculator

The Takeaway

Becoming a PA can result in a rewarding career — but also a significant amount of student loan debt. Fortunately, there are ways to make repayment easier, including student loan forgiveness, income-driven repayment plans, loan assistance repayment programs, and student loan refinancing. Borrowers can also create a budget to help them gain control of their finances as they work to repay their loans.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.


With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

How do I get PA loans forgiven?

To get PA loans forgiven, a borrower has several options, including pursuing Public Service Loan Forgiveness. PSLF requires that you work in an eligible public service job for the government or a nonprofit and make 120 qualifying loan payments. Or you can opt for an income-driven repayment plan to get loans forgiven after a payment period of 20 to 25 years. Finally, you should look into federal and state programs that give loan repayment assistance to PAs that work for a certain number of years in a high-needs community.

What is the 50/30/20 rule for student loans?

The 50/30/20 rule is a budgeting method that allocates 50% of a borrower’s income to necessary monthly expenses (including student loan payments), 30% to discretionary expenses, and 20% to savings. Users of the method can adjust the percentages to direct more money to student loan repayment. For instance, by cutting discretionary spending back to 20%, they could allocate extra money to their loan payments. The goal of this budgeting method is to help borrowers balance and gain control of their finances so they can manage their student loan debt.

How long does it take to repay PA student loan debt?

The average student loan borrower takes 20 years to pay off their student loans, according to the Education Data Initiative. However, the time it will take for a specific borrower to pay off their PA loan debt depends on how much debt they have, the payment plan they’re on, and their financial situation, among other factors.

For example, a borrower on the Standard Repayment Plan will pay off their loans in 10 years, though their fixed monthly payments will typically be high compared to other repayment plans, while a borrower on an income-driven plan can work to repay their loans for 20 or 25 years, after which any remaining balance is forgiven.

SoFi Student Loan Refinance
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 Private Student Loans
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 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.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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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Nov
14
2025
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Explaining Federal Direct Unsubsidized Loans

By | Debt Payoff, Fresh Out of School, Student Loans, student_loan | No Comments

Many of us simply don’t have the cash on hand to pay for college or graduate school out of our pockets. For the 2024-25 school year, the College Board estimates it costs $43,350 on average annually to attend a private non-profit four year university and $11,610 for in-state students at a public four-year school.

That means you might need to take out student loans to fund your education.To make sure you’re not in danger of defaulting on your loans or paying too much, it’s important to understand some student loan basics.

When you take out student loans, they’re either private or federal — meaning they either come from a private lender, like a bank, or are backed by the federal government.

Federal student loans are either subsidized or unsubsidized Direct Loans. There are also Federal Direct PLUS loans for parents. Interest rates for federal loans are set by Congress and stay fixed for the life of the loan. Federal student loans come with certain protections for repayment.

But what are the differences in the types of federal loans? When you’re weighing your options, you might want to understand some of the differences between a Federal Direct Unsubsidized Loan vs. a Direct Subsidized Loan vs. a private student loan, so you can evaluate all of your options.

Key Points

•   Federal Direct Unsubsidized Loans allow students to borrow without proving financial need, making them accessible to undergraduates, graduates, and professional degree students.

•   Interest on Unsubsidized Loans begins to accrue immediately after disbursement, resulting in a higher total amount owed upon graduation compared to Subsidized Loans.

•   To apply for a Federal Direct Unsubsidized Loan, students must complete the Free Application for Federal Student Aid (FAFSA®), which determines eligibility for various financial aid options.

•   The interest rates for these loans are fixed and set annually by Congress, with specific rates for undergraduates, graduate students, and PLUS Loans for parents.

•   Advantages of Unsubsidized Loans include higher borrowing limits and income-based repayment, while disadvantages involve responsibility for accruing interest and potential capitalization.

What Is a Federal Direct Unsubsidized Loan?

The federal government offers two umbrellas of Direct Loans: unsubsidized and subsidized. When you take out a loan, the principal amount of the loan begins to accrue interest as soon as the loan is disbursed (when the loan is paid out to you). That interest has to be paid or it is added onto the loan amount.

Subsidized Federal Student Loans

On a Federal Direct Subsidized Loan, the federal government (specifically, the U.S. Department of Education) pays the interest while you’re in school and during the six-month grace period after you graduate. On a Federal Direct Unsubsidized Loan, by contrast, you are responsible for paying all of the interest on the loan from the moment it starts accruing.

Since the interest is paid for you while you are in school on a subsidized loan, it doesn’t accrue. So the amount you owe after the post-graduation grace period is the same as the amount you originally borrowed.

💡 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.

Unsubsidized Federal Student Loans

On a Federal Direct Unsubsidized Loan, the interest accumulates even while you’re in school and during the grace period — even though you aren’t required to make any payments while in school.

The interest is then capitalized, meaning it gets added to the total principal amount of your loan. That amount in turn accrues interest, and you end up owing more when you graduate than you originally borrowed.

Of course, you can make interest payments on your unsubsidized loan while you’re in school to save yourself money in the long run. However, you’re not required to start paying off the loan (principal plus interest) until six months after leaving school.

For the 2025-2026 school year, the interest rate on Direct Subsidized or Unsubsidized Loans for undergraduates is 6.39%, the rate on Direct Unsubsidized Loans for graduate and professional students is 7.94%, and the rate on Direct PLUS Loans for graduate students, professional students, and parents is 8.94%. The interest rates on federal student loans are fixed and are set annually by Congress.

Origination fees for unsubsidized and subsidized loans is set at 1.057% for the 2025-2026 academic year.

How Do You Apply for a Federal Direct Unsubsidized Loan?

The first step to finding out what kind of financial aid you qualify for, including Federal Direct Unsubsidized Loans and Subsidized Loans, is to fill out the Free Application for Federal Student Aid (FAFSA®).

Your school will then use your FAFSA to present you with a financial aid package, which may include Federal Direct Unsubsidized and Subsidized Loans and other forms of financial aid like scholarships, grants, or eligibility for the Work-Study program.

The financial aid and loans you’re eligible for is determined by your financial need, the cost of school, and things like your year in school and if you’re a dependent or not.

Who Qualifies for Federal Direct Unsubsidized Loans?

Federal Direct Subsidized Loans are awarded based on financial need. However, Federal Direct Unsubsidized Loans are not based on financial need.

To receive either type of loan, you must be enrolled in school at least half-time and enrolled at a school that participates in the Federal Direct Loan program. And while subsidized loans are only available to undergraduates, unsubsidized loans are available to undergrads, grad students, and professional degree students.

💡 Quick Tip: Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too.

Pros and Cons of a Federal Unsubsidized Direct Loan

There are pros and cons to taking out federal unsubsidized direct loans.

Pros

•   Both undergraduates and graduate students qualify for Federal Direct Unsubsidized Loans.

•   Borrowers don’t have to prove financial need to receive an unsubsidized loan.

•   The loan limit is higher than on subsidized loans.

•   Federal Direct Loans, compared to private loans, come with income-based repayment and certain protections in case of default.

Cons

•   Federal Direct Unsubsidized Loans put all the responsibility for the interest on you (as opposed to subsidized loans). Interest accrues while students are in school and is then capitalized, or added to the total loan amount.

•   There are limits on the loan amounts.

Recommended: Should I Refinance My Federal Loans?

The Takeaway

Federal Direct Unsubsidized Loans are available to undergraduate and graduate students and are not awarded based on financial need. Unlike subsidized loans, the government does not cover the interest that accrues while students are enrolled in school. Unsubsidized federal loans are eligible for federal benefits like income-driven repayment or Public Service Loan Forgiveness.

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 does a Federal Direct Unsubsidized Loan work?

Federal Direct Unsubsidized Loans are student loans offered by the U.S. Department of Education that are available to both undergraduate and graduate students, regardless of financial need. Unlike subsidized loans, interest begins to accrue from the moment the funds are disbursed, even while the student is still in school and during the grace period. If you choose not to pay the interest while in school, it will be capitalized, meaning it is added to the principal balance of the loan. Repayment of the principal and accrued interest typically begins six months after you leave school or drop below half-time enrollment.

Is it good to accept a Federal Direct Unsubsidized Loan?

Accepting a Federal Direct Unsubsidized Loan can be a good option for many students, particularly because eligibility is not based on financial need, making them accessible to a wide range of undergraduates, graduate students, and professional degree students.

While you are responsible for all the interest that accrues from the time of disbursement, these loans offer several benefits that private loans may not, such as relatively low fixed interest rates, an income-driven repayment option, and potential eligibility for federal loan forgiveness programs like Public Service Loan Forgiveness. You also have the option to defer payments while in school and during a grace period, giving you flexibility.

What are the disadvantages of an unsubsidized loan?

The main disadvantage of an unsubsidized loan is that interest begins to accrue immediately after the loan is disbursed. Unlike subsidized loans (where the government pays the interest while you’re in school and during your grace period), with an unsubsidized loan, you are responsible for all the interest that accumulates from the start. If you don’t make interest payments while in school, this accrued interest will be capitalized (added to your principal balance), meaning you’ll end up owing more than you originally borrowed and paying interest on that larger amount.

SoFi Private Student Loans
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.

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.

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