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When deciding which applicants to accept, colleges and universities typically look for the best of the best. But, that doesn’t always mean the “best” is the person with the highest grades in high school.

Yes, a student’s grade point average, or GPA, is a good metric for measuring how successfully they completed their high school courses, but how much does a student’s GPA really matter for college admission? It depends.

Keep reading to find out when GPA matters, when it doesn’t, and all the other factors college admissions take into account beyond a student’s GPA.

Weighted vs Unweighted GPA

Traditionally, high schools measure a student’s academic performance on an unweighted GPA scale, meaning the number only goes up to a 4.0 for an A in a class. This measurement method does not take into account the difficulty level of classes, so an honors English class will be measured in the same way as a non-honors class.

On the other hand, weighted GPAs do take into account the difficulty level of a student’s coursework. Most weighted GPA scales measure from a 0 to a 5.0. This means an AP or honors-level class could earn a student a 5.0, while a lower-level class would award a maximum of 4.0 for an A.

A weighted scale can offer students a little more flexibility when it comes to their overall GPA. Say a student is taking four classes, one is an honors level course and the three others are typical classes. The student receives an A in the honors class, which accounts for a 5.0; an A in two other courses, denoting a 4.0 and a 4.0; and a B in the last, at a 3.0. Despite receiving a B in a course, that would still end up with a weighted 4.0 GPA.


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Do Colleges Look at Weighted vs. Unweighted?

For the sake of looking at all applicants equally, colleges generally look at unweighted GPAs. They will typically separately consider how rigorous the coursework was. For example, if you took all AP classes and have an unweighted 4.0 GPA, you would be seen as a stronger applicant than someone who took less challenging courses and also has an unweighted 4.0 — even though your GPAs are the same.

Colleges also look at unweighted GPAs (as well as standardized test scores and other factors) for merit-based scholarships. The more successful students are more likely to receive tuition funding.

College admissions staff may also look into other things when it comes to a student’s GPA, including grade trends. If a student didn’t start out high school on the best note, but performed well during their junior and senior year with a strong GPA, admissions may see that as excellent growth and perseverance in a student’s academic career.

Recommended: How Do Grades Affect Your Student Loans?

A “Good” GPA

It’s important to remember that your GPA isn’t everything, and that college admissions staff will likely look at much more than just your grades. However, it’s also always nice to know where you stand amongst the pack.

The average high school GPA is around 3.0 (or a B), including students who do and don’t apply to college. However, the average GPA for students applying to college is closer to 3.5 to 4.0, and the average for students applying to Ivy League schools can be even higher – 4.00 or close to it. The average weighted GPA is 4.5-4.8 at Harvard, for example.

While GPA isn’t everything, it’s a good idea to keep it in mind when deciding which schools, or how many, to apply to.

Recommended: How to Get Into College With a GED

What Else Do Colleges Look At?

Colleges and universities do not just look at GPA, they also take into account a complete picture of who a student is. That means they look into trends in a student’s grades throughout their education and likely look at a student’s test scores on the SAT or ACT.

College admissions officers also look at a student’s involvement in extracurriculars, sports teams, their involvement in their community through organizations and volunteer work, and any relevant work experience.

Admissions staff will also likely weigh a student’s application using their recommendation letters, which speak to a student’s merit far beyond their grades. Admissions will also read a student’s complete application and read any required essays.

Again, a lot goes into the admissions process, and grades aren’t the end all be all. This all means when you are preparing for college, even in your early high school years, you may want to prepare by diversifying your interests and pursuits to ensure they can tell a larger story in their application.

Colleges That Don’t Take GPA Into Account

There are schools out there with low or no minimum GPA requirements for applicants. These include many for-profit schools, as well as community colleges. In fact, if your GPA is on the lower end, you might consider attending a community college for a year or two and then transferring to a four-year university or college.

For example, California Community Colleges do not have a minimum GPA or testing requirements for incoming students. Attending a community college could be a great way for students to learn and grow personally and academically, and to increase their academic performance before transferring.

How to Pay for College

Being financially prepared for college can help take some of the stress away from worrying about how your GPA will affect your chances of admission.

While filling out applications, you may want to also look into all your financial options as well. This begins with filling out the Free Application for Federal Student Aid (FAFSA®) to see if you are eligible for federal student aid, which include grants, scholarships, work-study, and federal loans.

If you still have gaps to fill, you may also want to consider a private student loan via a bank, credit union, or private lender. Unlike federal student loans, this involves a credit check. Students who have strong finances (or have a cosigner who does) stand to get lower interest rates and more favorable loan terms. Keep in mind that private student loans don’t come with government protections such as forbearance and forgiveness programs.


💡 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.

The Takeaway

GPA is one factor in the college admissions process. How heavily GPA is weighted as a factor in admissions decisions will vary from school to school. Many schools will list the average GPA of admitted students, which can help give you an idea of how your GPA stacks up to students at that school. Other factors for admission might include a student’s transcript, letters of recommendation, and a personal essay.

When it comes to how to pay for college, students with a high GPA may receive merit-based scholarships. In addition, students rely on cash savings, grants, federal student loans, and private student loans.

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.

FAQ

Does GPA matter when applying for college?

Yes, GPA matters when applying for college, but it’s just one of several factors. Admissions officers also consider test scores, essays, recommendations, and extracurricular activities. A strong GPA can help, but a holistic review process is typically used.

What is the minimum GPA for college?

The minimum GPA for college varies by institution, but many require at least a 2.0 on a 4.0 scale. Competitive schools may have higher requirements, often around 3.0 or above. Always check the specific college’s admission criteria.

Can a high GPA compensate for low standardized test scores?

A high GPA can help, but it may not fully compensate for low standardized test scores. Admissions committees consider a holistic view, including test scores, essays, recommendations, and extracurricular activities.

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SOISL-Q325-046

If you’re getting divorced, you are likely going through a major upheaval on many fronts, including your financial life. You may wonder (and worry) about how your debt will be managed. For instance, will you wind up responsible for what your soon-to-be former spouse owes?

The answer will depend on when those debts were incurred (i.e., before or after you got married), the nature of the debt, as well as what state you live in. Here’s what you need to know about how debt is split in a divorce.

Community Property vs Common Law Property Rules

How assets and debt are divided in divorce largely depends on whether you live in a community property state or a common law state. These legal frameworks determine whether debts incurred during marriage are considered jointly owned or individually held.

Community Property States

In community property states most debts (and assets) acquired during the marriage are considered jointly owned, regardless of whose name is on the account. That means both spouses are typically equally responsible for all debts incurred during the marriage, even if one spouse did not contribute the debt.

For example, if one spouse racks up $20,000 in credit card debt during the marriage — even if it’s only in their name — both partners may be held equally liable in a community property state. Debts taken on before the marriage or after separation are typically treated as separate liabilities, but timing and documentation are critical.

These rules generally apply unless both spouses agree to a different arrangement or the court finds a compelling reason to divide up debts in a different way.

Community property states include:

•   Arizona

•   California

•   Idaho

•   Louisiana

•   Nevada

•   New Mexico

•   Texas

•   Washington

•   Wisconsin

Alaska, Florida, Kentucky, Tennessee, and South Dakota allow couples to opt into a community property system if they choose.

Common Law States

Most U.S. states follow common law property rules. In these states, debt responsibility is determined by whose name is on the account or who signed for the loan. If a debt is only in your spouse’s name and you didn’t cosign, you’re usually not liable for it.

However, there are some exceptions. Even in common law states, courts can assign debt responsibility based on broader concepts of fairness, especially if the debt benefited both spouses or was used to support the family.


💡 Quick Tip: A low-interest personal loan can consolidate your debts, lower your monthly payments, and help you get out of debt sooner

End of Debt Accrual

One crucial consideration is when debt accumulation legally stops. In most cases, the date of separation — either physical or legal — acts as the cutoff point for joint debt responsibility. Any debt incurred after this date is typically considered separate, assuming proper documentation is in place.

That said, the rules may vary by state. In some jurisdictions, debts continue to be shared until the divorce is finalized. It’s vital to document your separation and keep clear financial records from that point forward.

Recommended: How to Pay for a Divorce

How Is Debt Split in a Divorce?

How debt is divided in divorce can also vary depending on the type of debt. Here’s how common types of debt are typically handled:

Credit Card Debt

Credit card debt can be particularly tricky, especially if the couple used joint cards or shared authorized access. In community property states, credit card debt accrued during the marriage is generally shared, no matter whose name is on the card.

In common law states, the person whose name is on the account is typically responsible. However, if both spouses benefitted from the purchases — say, for groceries or vacation expenses — the court may still assign partial responsibility to both parties.

To protect yourself, consider paying off joint cards before divorce or freezing them during proceedings to prevent additional charges.

Mortgage Debt

Mortgages are often the largest debt shared by divorcing couples. If both names are on the loan and the deed, then both individuals are legally responsible for the payments — even if you separate or divorce.

There are several ways to handle mortgage debt in a divorce:

•   One spouse refinances the mortgage in their name and buys out the other’s share.

•   The couple sells the home and splits the proceeds (or losses).

•   Both parties agree to continue joint ownership for a set period (e.g., until the children move out), with clear terms for payment responsibility.

Whatever option you choose, you’ll want to make sure it is legally documented in the divorce agreement to avoid future disputes.

Student Loan Debt

Student loans are typically considered separate debt if incurred before marriage. If one of you takes out student loans during marriage and you live in a common law property state, those loans typically stay with the borrower.

If you live in a community property state, student loans taken out during the marriage generally become a shared responsibility. One exception: Federal student loans are generally kept with the spouse who took them out, even if it was after marriage.

If you cosigned your spouse’s student loans at any time — whether they’re federal, private, or refinanced student loans — you are legally liable to repay those loans if your spouse can’t, even after divorce.

Auto Loan Debt

If a car loan is in both names, both parties are generally liable, even if only one person drives the car and that person keeps the car after divorce. Ideally, the person who keeps the car assumes the loan or refinances it in their name.

If the loan is only in one name but the other spouse uses the vehicle, it’s essential to clarify in the divorce decree (the document that finalizes the divorce) who will take responsibility for the car and the loan moving forward.

Medical Debt

In community property states, medical debt incurred during the marriage is typically considered joint debt, even if it only involves one spouse. If you live in a common law state, you are typically not responsible for your spouse’s medical debt unless you co-signed on the debt. However, there are exceptions, such as the medical debt that benefited the family.

If one spouse accrued medical debt before getting married, or if the medical bills came after the divorce, that debt typically stays with that person.

Additional Considerations

Here are some other factors that can impact how debt is split in a divorce.

Prenuptial or Postnuptial Agreements

If you and your spouse signed a prenup or postnup that includes provisions for handling debt, those terms generally take precedence over state law.

These legal agreements can specify who is responsible for certain debts and can significantly simplify divorce proceedings, provided they’re properly drafted and enforceable under state law.

Hiring an Attorney

Dividing debt in a divorce can get complicated quickly. Hiring a qualified divorce attorney can help ensure that your rights are protected and that you fully understand the consequences of your decisions.

An attorney can also help mediate disputes, especially when emotions are running high, and prevent you from agreeing to terms that may haunt you later.

Managing Debt After a Divorce

Once the divorce is finalized, the financial journey isn’t over. Managing debt responsibly in the aftermath is essential for rebuilding credit and regaining financial independence.

Negotiating a Fair Debt Settlement

Ideally, you’ll want to negotiate a debt settlement with your ex-spouse as part of the divorce agreement. This might involve trading one type of asset for another or agreeing to pay off certain debts in exchange for other concessions.

It’s important to be clear about which debts are being assumed by each party and make sure the settlement is reflected in the legal documents.

If you can’t come to an agreement, the court will step in and distribute the assets based on state laws, which may be according to community property rules or the principals of equitable distribution.

Separating Joint Accounts

Failing to separate joint debt accounts after divorce can lead to unexpected consequences. If your name is still on a shared credit card or loan, you’re still legally responsible, regardless of the divorce decree.

It’s a good idea to close or refinance all joint accounts and remove authorized users where necessary. This can help prevent future charges and shields your credit from missed payments made by your ex.

Creating a Post-Divorce Budget

A new life calls for a new budget. Financial planning after divorce generally involves:

•   Recalculating income and expenses

•   Prioritizing debt repayment

•   Building emergency savings

•   Setting new financial goals

It can be helpful to consult a financial advisor during this transition period to help you get back on your feet and avoid future financial pitfalls.


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Paying Off Debt With a SoFi Personal Loan

If you’re overwhelmed with multiple high-interest debts after a divorce, consolidating them with a SoFi personal loan could be a smart move. SoFi offers fixed-rate personal loans with flexible terms and no-fee options.

Using a personal loan to pay off credit cards or medical debt can simplify repayment and potentially lower your overall interest rate. This can free up monthly cash flow and help you regain financial control faster.

The Takeaway

Divorce is rarely easy, and debt can make it even more stressful. Understanding how different debts are treated in your state can help you navigate the process more confidently.

Whether it’s dividing credit card balances, negotiating a mortgage transfer, or tackling student loans, it’s a good idea to try to work together to come up with a fair and transparent approach. With the right tools and guidance, you can emerge from divorce financially stable and ready to rebuild your future.

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.

FAQ

Who is responsible for debt after a divorce?

Responsibility for debt after a divorce depends on state laws. In community property states, debts incurred during the marriage are typically considered jointly owned and equally shared between spouses, regardless of whose name is on the loan or credit card. In common law states, debt during marriage generally belongs to the spouse whose name is on the account or who incurred the obligation.

Can divorce ruin your credit?

Divorce itself doesn’t directly affect your credit score, but how you handle shared debts during and after divorce can.

Missed payments, defaults, or maxed-out joint accounts can have a negative impact on your credit profile if your name is still associated with them. Creditors report payment history regardless of divorce agreements. If your ex fails to pay a joint debt, your credit can also be adversary affected. To protect your scores, separate or close joint accounts and monitor your credit reports throughout and after the divorce process.

What happens to joint credit cards after separation?

Joint credit cards remain legally shared until they are closed or refinanced, even after divorce. This means that both parties are still responsible for any balance, regardless of who made the purchases. Ideally, couples should freeze or close joint accounts and transfer balances to individual accounts. Working with your attorney can help prevent misuse and protect your credit.

Should I pay off shared debt before finalizing a divorce?

It’s generally a wise idea to pay off shared debt before finalizing a divorce. Doing so can simplify division of assets, reduce post-divorce financial entanglements, and protect your credit. When joint debts are left unresolved, it can lead to late payments or defaults, which can negatively impact your credit profile.

If paying off the debt isn’t feasible, try to refinance or transfer it to individual accounts. Discussing debt management in the divorce settlement can help ensure clear financial responsibilities and minimize future disputes.

How can I protect my credit during and after a divorce?

To protect your credit during and after a divorce, start by checking your credit reports and identifying all joint accounts. You might then want to freeze or close joint credit cards, remove your name from authorized user accounts, and monitor payments closely.

It’s also important to work with your attorney to assign debts in the divorce decree. Just remember that creditors don’t honor divorce agreements and will continue to hold you responsible if your name is still attached to a debt.

Post-divorce, you’ll want to establish credit in your own name, pay bills on time, and regularly review your credit reports.

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SOPL-Q325-018

Bank tellers are the face of local bank branches. When you visit a bank in person, tellers welcome you in with a smile and help you with your transaction — whether you’re depositing a check or withdrawing cash from your savings account.

What are the job responsibilities like, and how much does a bank teller make an hour? Our in-depth guide to bank teller salaries and skills will help you determine if it’s the right career for you.

What Does a Bank Teller Do?

A bank teller’s job is to help customers complete financial transactions with their bank accounts. Tellers work in person at bank branches and can help with things like opening and closing accounts, and depositing and withdrawing funds.

Bank Teller Job Responsibility Examples

What might a bank teller do in their day to day? Here are a few examples:

•   Greet customers as they enter the bank or credit union

•   Complete transactions through the bank drive-through

•   Help customers open a new checking or savings account

•   Answer calls and emails to offer customer service

•   Prepare money orders, savings bonds, and traveler’s checks for customers

•   Record transactions throughout their shift

•   Count the cash in their drawers at the beginning and end of a shift

•   Explain the various financial products offered by the bank

Bank Teller Skills

Here are some of the skills you’ll need to be a successful bank teller:

•   Positive attitude

•   Patience

•   Customer service

•   Clear communication

•   Math and money management

•   Sales

•   Technology

•   Willingness to learn

How Much Do Starting Bank Tellers Make?

The Bureau of Labor Statistics (BLS) reports that the average hourly wage for a bank teller is $18.91, but those just starting out should expect to make less. According to Indeed, bank tellers with less than a year of experience make $16.56 an hour on average, but that varies by location.

What Is the Average Salary for a Bank Teller?

The average salary for a bank teller is $39,340, but this varies by level of experience and by location. For instance, the BLS breaks down mean bank teller salaries by state:

•   How much does a bank teller make in California? $44,440 a year

•   How much does a bank teller make in Texas? $36,110 a year

•   How much does a bank teller make in Illinois? $38,350 a year

Bank tellers earn the highest average annual salary in Washington state ($48,970) and the lowest average annual salary in West Virginia ($32,720). Check out the table below for insight into how much bank tellers make a year, or switch gears and research the highest paying jobs by state.

Regardless of where you live, it’s a smart idea to review your budget a few times a year and make any adjustments if needed.

Pros and Cons of a Bank Teller Salary

A job as a bank teller has some pros, but there are a number of cons, like a low salary, to consider:

Pros

•   Career growth: The average hourly rate of a bank teller is competitive with other entry-level salaries, and there’s plenty of room for advancement. Some tellers move up to head teller positions. Others move on to supervisory positions, become loan officers, or transition to sales.

•   Benefits: Although some employees may not earn super competitive pay, bank tellers who work full-time can enjoy nice benefits from the bank, including health care, retirement plans, and paid time off.

•   Regular schedule: Many entry-level jobs, such as those in retail and restaurants, have unpredictable hours. Banks operate under normal business hours and are closed on Sundays (and bank holidays!). That means you’ll enjoy a more consistent schedule as a bank teller.

Recommended: Should We Raise the Minimum Wage?

Cons

•   Salary: While bank tellers can make good money — the top 10% make an average of $46,950 — the overall average falls below what the typical person with a high school diploma makes in a year in the U.S. Here are some of the best jobs without a college degree.

•   Job outlook: The BLS is predicting a 15% decline in job opportunities from 2023 to 2033. As more financial institutions switch to predominantly online banking experiences and shut down branches, job insecurity for bank tellers could be further undermined.

•   Draining job: Bank tellers must deliver an excellent customer experience every day. When customers are dealing with finances, it’s easy for them to become frustrated or upset — which can be draining for bank tellers who are trying to help. To be clear, this is not a job for antisocial people!

Recommended: What Trade Job Pays the Most Money?

The Takeaway

Bank tellers can make decent money, though there may be other jobs that require the same level of experience and education but pay more. However, hard-working bank tellers can often move up within the company and command better salaries.

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FAQ

Which bank pays the most for tellers?

According to data from Glassdoor, the financial institutions that pay the most for tellers include Wells Fargo, Chase, TD Bank, Bank of America, PNC Financial Services Group, Citi, and U.S. Bank.

What is the highest teller salary?

The top 10% highest paid bank tellers make an average annual salary of $46,950 — that’s $22.57 an hour. Bank tellers in Washington state, California, and Connecticut are the highest paid, on average.

Is it hard to be hired as a bank teller?

Because of the rise in online banking, it’s becoming more challenging to be hired as a bank teller. In fact, the Bureau of Labor Statistics predicts that bank teller employment will decline 15% between 2023 and 2033.

That said, you don’t need a college degree to become a teller, and training is all on the job. This makes breaking into the career field easier for those without a secondary or vocational education.

Photo credit: iStock/Fly View Productions

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

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.

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.

SORL-Q325-004

While it can be a challenge to keep up with both work and school, getting a part-time job while in college can help you cover your expenses and gain valuable work experience at the same time. In addition, some employers may even offer to pay a portion of your college tuition as a part of their benefits package.

There are all kinds of jobs for college students — from on-campus jobs with regular hours to side gigs you can do in your spare time. While students often find work in the retail and service industry, it’s also worth exploring other avenues for employment, including office work and even jobs related to your field of study.

Read on for a basic guide to finding a job that can help you pay for college.

Part-Time Jobs That Help Pay for College

Working part-time while you’re in college can help you pay for tuition and other expenses. These jobs typically offer flexible hours, allowing you to work around your class schedule.

You might start your search for jobs that help pay for college with businesses you already know and love. For example, you could see if your favorite cafe is hiring or ask about opportunities at the yoga studio you love. Even if they don’t have a paying position, some small businesses offer “service swaps” where you might be able to score free coffee, meals, or exercise classes for some light work. It pays to ask!

Here’s a look at other job opportunities that can help students earn money for college.


💡 Quick Tip: Make no payments on SoFi private student loans for six months after graduation.

On-Campus Jobs

Colleges and universities hire students for a variety of jobs on campus. Part-time on-campus jobs are not only convenient but typically provide flexibility so you can work around your class schedule. Plus, a lot of on-campus jobs can help you build relevant skills that will serve you after graduation.

The career center at your school will likely have lots of resources that can help you find employment on campus, including an online job board. Your school can also help you find a job campus through the Federal Work-Study program. To see out if you’re eligible for work-study, which is a needs-based program, you need to fill out the Free Application for Federal Student Aid, or FAFSA®.

Below is just a sampling of on-campus job options you might consider, plus what they pay, on average, per hour:

•   Administrative assistant: $22.82 per hour

•   Teaching assistant: $17.00 per hour

•   Research assistant: $23.90 per hour

•   Fitness or recreation center attendant: $17.01 per hour

•   Lifeguard: $14.60 per hour

•   Peer tutor: $19.27 per hour

•   Library assistant: $16.36 per hour

•   Campus tour guide: $17.31 per hour

Paid Internships

Your school’s career center may also be able to provide information about internship opportunities in your field of study. Some college internships provide college credits, which can help you pay for college by reducing your tuition bill. In other cases, internships are paid. On average, college interns in the U.S. earn $22.06 per hour.

If you don’t want to work during the school year, summer can be a great time to focus on a career-boosting internship without distracting you from your coursework. Some summer internships may even pay more than $9,000 per month.

Securing a paid internship tends to be competitive, so it can be wise to apply early and make sure your application materials are compelling and complete. Internships can provide valuable learning opportunities and some of the top-rated internships even offer the opportunity for future full-time employment.

Serving, Bartending, or Other Service Jobs

Many college students work part time in the service industry because the hours are flexible and you can often earn tips in addition to an hourly pay. This can be especially helpful during peak hours and holidays because your income could be higher than usual. Here’s a look at some service jobs and their average hourly pay and tips:

•   Barista: $16.74 per hour (plus $20 in tips per day)

•   Restaurant server: $15.36 per hour (plus $100 in tips per day)

•   Restaurant host: $12.09 per hour (plus $35.00 in tips per day)

•   Bartender: $12.55 per hour (plus $150 in tips per day)

Retail Jobs

If you’re looking for a part-time job that will help pay for college, you might consider working in a local boutique or other type of retail store. These jobs also provide you with valuable human and workplace skills that can be used later in your professional career.

A retail sales associate is typically required to set up store merchandise and assist customers with their shopping needs. You also might even be able to get employee discounts or earn a commission. The average retail sales associate salary in the U.S. is $14.30 an hour.

Tutoring

You’ve been hitting the books and now it’s time to put all of that newfound knowledge to good use. You may be paying for your education, but there are also people out there willing to pay you to share what you’ve learned, which can help make college more affordable. Consider tutoring other college students or younger students in your area of expertise. Rates will vary based on location, subject matter, and your experience level. On average, private tutors earn $25 to $80 an hour.

Virtual Assistant

Sometimes small businesses and entrepreneurs need someone who can answer their emails, perform odd jobs online, and otherwise provide administrative support virtually. You might look for these gigs online or through your school’s career development office. Before you take on a role, it’s important to know what’s expected: Are they looking for someone to be available during specific hours or could you get everything done on your own time? On average, a virtual assistant makes $24.40 an hour.

Recommended: 3 Summer Jobs Ideas for College Students

Babysitting or Caregiving

Babysitting can be another job option to help pay for college if you’re looking for flexibility. You can schedule jobs for weekends or nights if you’re worried about work conflicting with your school schedule. As a bonus, you may be able to squeeze in some studying while the little ones are asleep. On average, part-time college nanny jobs pay $20 (or more) an hour.

Keep in mind that caregiving isn’t just limited to little kids. You may find meaningful roles working with elderly or ill people who need help, either with day-to-day tasks or with errand running, housekeeping, or even just keeping someone company while they shop. On average, a part-time caregiver earns $16 an hour.

Dog Walking

Having flexibility during the day can mean everything for people who work 9 to 5 and need someone to care for Fido. Consider working for a walking service rather than striking it out on your own: It may provide guaranteed hours or jobs, so you can get to know the pooches you work with. The average salary for a dog walker in the U.S. earns $17 per hour.

Ridesharing or Delivery Driving

Driving for a ride-sharing or delivery service can be a good option during college, since you can generally set your own hours and fit the job into your schedule. How much you could make will depend on your location and the times you’re available to drive. Many Uber drivers make between $15 and $28 per hour, while the average hourly wage for food delivery drivers nationwide is $18 per hour.

It can also be helpful to talk to locals to get the lay of the land — national earnings surveys may be very different from your local area, and it can be helpful to anticipate just how much demand there might be before you sign on.

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Freelance or Start a Side Hustle

If you have a sought-after skill or talent, such as writing, website design, photography, or coding, you might consider starting your own freelance business or side hustle. You can advertise your skills on a freelance platform like Fiverr or Upwork. Or, you could solicit clients in your community. For example, you might be able to build a website for a local small business or get hired to manage an off-campus store’s online brand and marketing.

Consider Companies That Help Pay Your Tuition

Part-time jobs can be one option to help you pay for college, but what if you can find a job that not only pays you a salary but also pays for tuition? There are some major companies that offer stipends or reimbursements toward college tuition or expenses like books, even for part-time employees.

Employers generally offer tuition assistance in one of three ways:

•   Tuition reimbursement: Here, the company reimburses you for tuition you’ve paid. There may be a tuition cap and/or a requirement to work a certain number of hours or months before the benefit kicks in.

•   Direct payment: Some employers will pay eligible college costs directly to the school. In some cases, they only partner with certain schools.

•   Scholarships: Some employers offer education scholarships to employees for a set amount of money. You typically need to submit an application for the award and may also be required to maintain a certain GPA.

Here are some national companies that have well-publicized tuition assistance policies:

Chipotle

At Chipotle, tuition reimbursement (up to $5,250 each year) is available for both part-time and full-time employees. They also offer a Debt-Free Degree program, which covers the full cost of a four-year degree at one of 10 universities. Typically, employees must work at least 15 hours a week for four months to qualify for tuition benefits.

Smucker’s

Smucker’s helps employees further their knowledge and skills by reimbursing them for some of the costs of qualifying continued and/or higher education. The company also offers a scholarship program for children of employees.

Publix

At Publix, associates with 90 days of continuous service who work an average of 10 hours a week are eligible to participate in the company’s tuition reimbursement program. The program covers graduate and undergraduate degree coursework, as well as some individual courses, online programs, and technical training.

Starbucks

Starbucks is often featured on these lists for a reason: They partnered with Arizona State University (ASU) to create the Starbucks College Achievement Plan, which offers 100% tuition coverage for a first-time bachelor’s degree through Arizona State University’s online program. All employees eligible for benefits (this includes part-time employees) may take advantage of this program.

If an employee doesn’t qualify for admission to ASU, they can take part in the Pathway to Admission program, which will help them qualify for admission, tuition-free.

UPS

UPS offers a tuition assistance program at most locations in the U.S. Through their “Earn and Learn” program, you can receive up to $5,250 per calendar year, with a lifetime maximum of $25,000. There are no course or subject restrictions.

Walmart

Walmart will pay 100% of tuition and books for an associate or bachelor’s degree program through several online accredited universities. This benefit is available to hourly part-time and full-time associates without a prior bachelor’s degree starting on day one.

Amazon

Amazon offers tuition assistance for employees seeking a bachelor’s degree, a high school GED, or English-as-a-Second-Language (ESL) proficiency certification. You’re eligible for the program after 90 days of employment for as many years as you work in a regular, full-time role at Amazon.

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Think About Your First Job Out Of School

Another benefit of finding a job that helps pay for college is you can figure out what you do (and don’t) want to do for a living. It can also be helpful to assess certain job paths, including how much they may pay entry-level employees. While there are always lists of most and least lucrative majors, the reality is that your major doesn’t necessarily determine your career. Talk to alums and people a few years out of school and have them give you the lowdown on their job path.

When looking for your first full-time job out of college, it’s also important to consider not just your salary, but what benefits may come into play. For example, many companies now offer employees assistance in paying off student loans. How it works varies by company, but the typical plan offers matching funds or a predetermined recurring monthly payment towards your loan. Usually, there’s a maximum dollar amount you can receive and some employers require a minimum amount of time on the job.


💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, Federal Direct Subsidized and Unsubsidized Loans, Direct PLUS Loans, and more.

The Takeaway

The combination of scholarships, student loans, and a part-time job can help you cover the cost of going to college for four (or more) years. A part-time job will not only help you earn some money, but it could also help boost your resume.

In addition, some companies offer tuition reimbursement or assistance programs for part- or full-time employees pursuing higher education. These programs may have specific requirements, such as attending a certain school or working a set number of hours per week, so be sure you understand the requirements.

Outside of help from an employer, ways to pay for college include working a part-time job, scholarships, grants, and federal and private student loans.

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.

FAQ

How do you ask a company if they offer tuition reimbursement?

To find out if a company offers education benefits like tuition assistance, you can talk to your manager or HR representative (if you already work there). If you’re in the interviewing process, you can ask the recruiter or hiring manager. You can also check the company’s website (often they will describe their benefits, including who is eligible and any other stipulations).

What are the disadvantages of tuition reimbursement?

One disadvantage of tuition reimbursement is that you typically need to pay for your classes upfront, then submit the bill to your company for reimbursement. Some tuition reimbursement programs also have strict requirements and limitations, such as a cap on the amount of money that can be reimbursed, or only covering certain types of courses or degrees.

Also keep in mind that balancing work and courses can also be challenging for some employees to manage successfully.

Why would a company offer generous tuition reimbursement?

Many companies offer generous tuition assistance programs in order to attract, develop, and retain high-performing employees.

SoFi Private Student Loans
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SOISL-Q325-034

A Roth 401(k) is a type of retirement plan that may be offered by your employer. You contribute money from your paychecks directly to a Roth 401(k) to help save for retirement.

A Roth 401(k) is somewhat similar to a traditional 401(k), but the potential tax benefits are different.

Here’s what you need to know to understand how Roth 401(k)s work and to decide if it may be the right type of retirement account for you.

Roth 401(k) Definition

A Roth 401(k) combines some of the features of a traditional 401(k) plan and a Roth IRA.

Like a traditional 401(k), a Roth 401(k) is an employer-sponsored retirement account. Your employer may offer to match some of your Roth 401(k) contributions.

Like a Roth IRA, contributions to a Roth 401(k) are made using after-tax dollars, which means income tax is paid upfront on the money you contribute.

History and Purpose of the Roth 401(k)

The Roth 401(k) was first offered in 2006 as a provision of the Economic Growth and Tax Relief Reconciliation Act of 2001. Modeled after the Roth IRA, the Roth 401(k) was created to give employees an employer-sponsored investment savings plan that allowed them to save for retirement with after-tax dollars. Employees with a Roth 401(k) pay taxes on their contributions when they make them and withdraw their money tax-free in retirement, as long as the account has been funded for at least five years.

Originally, the Roth 401(k) was due to expire at the end of 2010, but the Pension Protection Act of 2006 made it permanent.

How a Roth 401(k) Works

Contributions to a Roth 401(k) are typically made directly and automatically from your paycheck. As mentioned above, your contributions are taxed at the time you contribute them, and you pay income taxes on them. In general, your money grows in the account tax-free and withdrawals in retirement are also tax-free, as long as the account has been open at least five years.

Differences Between a Roth 401(k) and a Traditional 401(k)

While a Roth 401(k) shares some similarities to a traditional 401(k), there are some differences between the two plans that you should be aware of. When it comes to 401(k) vs Roth 401(k), these are the differences:

•   Contributions to a Roth 401(k) are made with after-tax dollars and you pay taxes on them upfront. With a traditional 401(k), your contributions are made with pre-tax dollars, and you pay taxes on them later.

•   With a Roth 401(k), your take-home pay is a little less because you’re paying taxes on your contributions now. With a traditional 401(k), your contributions are taken before taxes.

•   Your money generally grows tax-free in a Roth 401(k). And in retirement, you withdraw it tax-free, as long as the account is at least five years old and you are at least 59 ½. With a traditional 401(k), you pay taxes on your withdrawals in retirement at your ordinary income tax rate.

•   You can start withdrawing your Roth 401(k) money at age 59 ½ without penalty or taxes. However, you must have had the account for at least five years. With a traditional 401(k), you can withdraw your money at age 59 ½. There is no 5-year rule for a traditional 401(k).

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How Employer Matching Works in a Roth 401(k)

Roth 401(k)s are typically matched by employers at the same rate as traditional 401(k)s plans. Your employer may match your Roth 401(k) contributions up to a certain amount or percentage, depending on the employer and the plan.

Historically, matching contributions for employees with a Roth 401(k) had to be put into a separate traditional 401(k). But because of the SECURE Act 2.0, this changed in 2023. Now employers have the option to make matching contributions directly into an employee’s Roth 401(k).

There are two main methods employers typically use to match employees’ Roth 401(k) contributions:

•   Partial matching: This is when the employer matches part of an employee’s contribution, usually up to a particular percentage of their salary, such as $0.50 for every employee dollar contributed up to 6% of the employee’s salary.

•   Dollar-for-dollar matching: In this case, the employer matches the employee’s contributions 100%, typically up to a certain percentage of the employee’s salary.

It’s important to note that not all employers offer Roth 401(k) matching. Those who do offer it may have certain stipulations. For example, employees may be required to contribute a specific minimum amount to their Roth 401(k) for the employer match to kick in. Check with your Roth 401(k) plan documents or your HR department to find out about your employer’s policy for matching contributions.

Roth 401(k) Contribution Limits

A Roth 401(k) and a traditional 401(k) share the same contribution limits. Both plans allow for the same catch-up contributions for those 50 and older (learn more about catch-up contributions below).

Here are the 2025 contribution limits for each type of plan.

Catch-Up Contributions for Those 50 and Older

Individuals who are age 50 and up have the opportunity to make catch-up contributions to a Roth 401(k). Catch-up contributions are additional money individuals can contribute to their Roth 401(k) beyond the standard yearly limit.

So, in 2025, if you contribute the standard annual limit of $23,500 to your Roth 401(k), you have the option of contributing an additional $7,500 for the year — for a total of $31,000, as long as you are age 50 or older. And if you are aged 60 to 63, in 2025, you can take advantage of enhanced SECURE 2.0 catch-up contributions of $11,250 instead of $7,500, for a total of $34,750.

Just like the standard contributions you make to a Roth 401(k), when you make catch-up contributions to your account, you also use after-tax dollars. That means you can withdraw the money tax-free in retirement.

Making catch-up contributions is one important factor to consider when you’re thinking about how to manage your 401(k), especially as you get closer to retirement.

Roth 401(k) Withdrawal Rules

A Roth 401(k) has certain withdrawal rules, including the 5-year rule. Under this rule, an individual can start taking tax-free and penalty-free withdrawals from a Roth 401(k) at age 59 ½ only when they’ve had the account for at least five years.

This means that if you open a Roth 401(k) at age 56, you can’t take tax- or penalty-free withdrawals of your earnings at age 59 ½ the way you can with a traditional 401(k). Instead, you’d have to wait until age 61, when your Roth 401(k) is five years old.

Early Withdrawal Rules

There are some exceptions to the withdrawal rules. For example, it’s possible to take early withdrawals — meaning withdrawals taken before age 59 ½ or from an account that’s less than five years old — from a Roth 401(k) without taxes and penalties, if an individual is disabled or passes away.

Other early withdrawals may be taken as well, but they are subject to taxes and a 10% penalty. However, you may not owe taxes and penalties on the entire amount, only on the earnings.

Here’s how it typically works: You can withdraw as much as you’ve contributed to a Roth 401(k) without paying taxes or penalties because your contributions were made with after-tax dollars. In other words, you’ve already paid taxes on them. Any earnings you withdraw, though, are subject to taxes and penalties, and you’ll owe tax proportional to your earnings.

For example, if you have $150,000 in a Roth 401(k) and $130,000 of that amount is contributions and $20,000 is earnings, those $20,0000 in earnings are taxable gains, and they represent 13.3% of the account. Therefore, if you took an early withdrawal of $30,000, you would owe taxes on 13.3% of the amount to account for the gains, which is $3,990.


💡 Quick Tip: How much does it cost to set up an IRA? Often there are no fees to open an IRA online, but you typically pay investment costs for the securities in your portfolio.

Roth 401(k) RMDs

Previously, individuals with a Roth 401(k) had to take required minimum distributions (RMDs) starting at age 73 (the age for RMDs was raised from 72 to 73 in 2023, thanks to SECURE 2.0). However, in 2024, as a stipulation of SECURE 2.0, RMDs were eliminated for Roth accounts in employer retirement plans.

By comparison, traditional 401(k)s still require taking RMDs starting at age 73.

Pros and Cons of a Roth 401(k)

A Roth 401(k) has advantages, but there are drawbacks to the plan as well. Here are some pros and cons to consider:

Pros

You can make tax-free withdrawals in retirement with a Roth 401(k).
This can be an advantage if you expect to be in a higher tax bracket when you retire, since you’ll pay taxes on your Roth 401(k) contributions upfront when you’re in a lower tax bracket. Your money grows tax-free in the account.

There are no longer RMDs for a Roth 401(k).
Because of the SECURE 2.0 Act, required minimum distributions are no longer required for Roth 401(k)s as of 2024. With a traditional 401(k), you must take RMDs starting at age 73.

Early withdrawals of contributions in a Roth 401(k) are not taxed.
Because you’ve already paid taxes on your contributions, you can withdraw those contributions early without paying a penalty or taxes. However, if you withdraw earnings before age 59 ½, you will be subject to taxes on them.

Cons

Your Roth 401(k) account must be open for at least five years for penalty-free withdrawals.
Otherwise you may be subject to taxes and a 10% penalty on any earnings you withdraw if the account is less than five years old. This is something to consider if you are an older investor.

A Roth 401(k) will reduce your paycheck now.
Your take home pay will be smaller because you pay taxes on your contributions to a Roth 401(k) upfront. This could be problematic if you have many financial obligations or you’re struggling to pay your bills.

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Is a Roth 401(k) Right for You?

If you expect to be in a higher tax bracket when you retire, a Roth 401(k) may be right for you. It might make sense to pay taxes on the account now, while you are making less money and in a lower tax bracket.

However, if you expect to be in a lower tax bracket in retirement, a traditional 401(k) might be a better choice since you’ll pay the taxes on withdrawals in retirement.

Your age can play a role as well. A Roth 401(k) might make sense for a younger investor, who is likely to be earning less now than they may be later in their careers. That’s something to keep in mind as you choose a retirement plan to help reach your future financial goals.

The Takeaway

Participating in a Roth 401(k) through your employer can help you save for retirement. Employees make contributions using after-tax dollars, and the money can be withdrawn tax-free in retirement. Your employer may match your contributions, which is essentially free money.

Of course, a Roth or traditional 401(k) isn’t the only way to save for retirement. Along with an employer-sponsored account, you might want to boost your savings with an IRA or a brokerage account, for instance. Whatever type of accounts you choose, the important thing is to have a retirement savings strategy in place to help make your post-working life as comfortable as possible.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

FAQ

How is a Roth 401(k) taken out of a paycheck?

Contributions to a Roth 401(k) are automatically deducted from your paycheck. Because contributions are made with after-tax dollars, meaning you pay taxes on them upfront, your paycheck will be lower.

What is the 5-year rule for a Roth 401(k)?

According to the 5-year rule for a Roth 401(k), the account must have been open for at least five years in order for an investor to take qualified withdrawals of their Roth 401(k) earnings at age 59 ½ without being subject to taxes and a 10% penalty.

What happens to a Roth 401(k) when you quit?

When you quit a job, you can either keep your Roth 401(k) with your former employer, transfer it to a new Roth 401(k) with your new employer, or roll it over into a Roth IRA.

There are some factors to consider when choosing which option to take. For instance, if you leave the plan with your former employer, you can no longer contribute to it. If you are able to transfer your Roth 401(k) to a plan offered by your new employer, your money will be folded into the new plan and you will choose from the investment options offered by that plan. If you roll over your Roth 401(k) into a Roth IRA, you will be in charge of choosing and making investments with your money.

Do I need to report a Roth 401(k) on my taxes?

Because your contributions to a Roth 401(k) are made with after tax dollars and aren’t considered tax deductible, you generally don’t need to report them on your taxes. And when you take qualified distributions from a Roth 401(k) they are not considered taxable income and do not need to be reported on your taxes. However, it’s best to consult with a tax professional about your particular situation.

Can you roll over a Roth 401(k) into a Roth IRA?

Yes, you can roll over a Roth 401(k) into a Roth IRA. You can do this, for example, if you leave your job. Rolling over your Roth 401(k) typically gives you a wider range of investment options to choose from. Roth IRA rollovers can be complicated, however, so you may want to consult a tax professional to make sure you don’t incur any unexpected tax situations.