Aug
20
2025
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College Planning Checklist for Parents

By | Budgeting & Goals, Life & Career, Student Loans, student_loan | Comments Off on College Planning Checklist for Parents

College planning is an exciting time for you and your child. But, as exciting as it may be, there is a lot of preparation involved.

So, whether your child is entering into their freshman year of high school or a few months away from graduation, there is no better time to start planning for college than the present.

From figuring out your financials to helping your child prepare for admission exams, this college planning checklist for parents can help streamline your child’s transition from high school to college.

Key Points

•  Begin planning for college early to ensure you and your child are well-prepared for the college journey, from applications to move-in day.

•  Create a budget and explore financial aid options, including scholarships, grants, and student loans, to manage college costs effectively.

•  Take campus tours and attend information sessions to help your child make an informed decision about where to attend.

•  Keep all important documents, such as financial aid forms, transcripts, and identification, organized and easily accessible.

•  Provide emotional support and encouragement, helping your child navigate the transition to college life and feel confident about their new journey.

Starting a Savings Plan

According to the Education Data Initiative, the average cost of college in the U.S. is $38,270 per year, including books, supplies, and daily living expenses. Indeed, the cost of going to college has more than doubled over the past two decades.

With this in mind, it’s wise to start saving for college. But, while many parents may have the best intention of helping their children pay for their college expenses, they often fail to prepare.

So, even if your child is just now entering high school, you can still start saving and preparing for college costs. It’s never too late to start setting money aside for your children’s education.

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

Paying Close Attention to Grades and Curriculum

Since grades and curriculum are crucial to getting an acceptance letter, you may want to keep close tabs on your student’s grades and study habits. From helping with studying to supporting homework expectations, getting involved with your kid’s coursework may help them perform better in school.

You may also want to encourage them to take Advanced Placement courses. Since AP courses allow you to tackle college-level material while your child is still in high school, your student may get ahead by taking some.

Recommended: ACT vs. SAT: Which Do Colleges Prefer?

Encouraging Involvement with the Community

While the top factors in admission decisions tend to be academics, the next most important factors typically include a student’s demonstrated interest and extracurricular activities.

Encouraging your child to get involved in the community could potentially help them write a solid college application, and even help them decide what they want to do with the rest of their lives.

For example, if your child loves to run, they may want to try out for the track team to round out their classes or volunteer as a track coach for a youth team. Or, if they prefer journalism instead of sports, they may want to try writing for the school newspaper.

Not only will getting involved help with their college application, but it will also help sharpen their skills. So, don’t be afraid to encourage them to explore their passions and get involved with the school and/or local community. You might even want to get involved with them.

Planning for the SAT and ACT

Another key component to receiving acceptance letters from colleges and universities is having acceptable SAT and ACT scores. Some schools require the Scholastic Aptitude Test, known as the SAT, while others may require the American College Testing, known as the ACT. Some schools will accept either one, but it’s a good idea to check the preference of the schools your child will apply to.

To help your child prepare, you can encourage them to sign up for an after-school prep class or practice at home by using online resources such as Khan Academy’s free SAT practice program in partnership with The College Board.

Recommended: How to Help Your Child with SAT Practice

Researching Schools

One of the most important components of college planning for your child is helping them decide which university or college is the right fit. Fortunately, there are plenty of options available to help you find a school that will fit your child’s education and experience needs.

To get started in the decision-making process, you may first want to help your child decide what degree they would like to achieve. If they know they want to be an engineer, for example, you may want to focus on schools with good engineering programs.

It’s also wise to consider factors such as location and the type of college experience your child wants to have. For example, if they want to go to a school close to home and commute to save money, that desire will limit the search parameters.

Remember, while you may be the voice of reason, the ultimate decision is up to your child — the student. Simply help them evaluate all of the key factors in making an informed decision.

Scheduling College Visits

College visits can be a big help when it comes to finding the right fit. With this in mind, you may want to help your child plan a college visit well in advance of making a decision. The College Board recommends scheduling your visits during your child’s junior year in the spring if you have already researched schools.

For seniors, it may be best to schedule visits in the fall through the winter months. This may help seniors narrow down their options.

Since you want your child to get a feel of the college experience, you’ll want to make sure classes are in session. Therefore, it’s also wise to avoid visits during holidays or break weeks.


💡 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.

Investigating Financial Aid Options

Even if you have saved for your child’s education, you may want or need to explore other funding options, which could include your child taking on some of the cost.

Completing a Free Application for Federal Student Aid (FAFSA®) is one of the first recommended steps to applying for student financial aid, whether that is in the form of grants, scholarships, federal loans, or work-study.

It’s recommended to complete the form as soon as possible because there are differing deadlines to be aware of, including for individual colleges as well as federal and state deadlines. The sooner you submit your FAFSA, generally, the better your chances of receiving aid will be.

Colleges and universities will use the information reported on the FAFSA to determine how much aid a student is eligible for. Even if your child has not applied to a school yet, they can list that school on the FAFSA, so encourage them to include their dream school as well as those they consider safety schools.

Comparing each financial aid award letter can help you and your child determine the financial obligation of attending each school. It is recommended to exhaust all federal aid options before considering a private loan, but if you are looking for supplemental funding for your child’s education, private student loans may be an option.

The Takeaway

College planning is a significant journey that requires careful preparation and support. By starting early, managing finances wisely, visiting campuses, organizing important documents, and providing emotional support, parents can help their children navigate this exciting transition with confidence and ease.

Parents and students can pay for college with cash savings, federal financial aid (including grants, scholarships, and 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.


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

When should parents start planning for their child’s college journey?

Parents should start planning early, ideally during the child’s high school years, to ensure they are well-prepared for the entire college process, from applications to move-in day.

What are some important financial steps parents should take when planning for college?

Parents should create a budget, explore financial aid options like scholarships, grants, and student loans, and understand the costs associated with college to manage expenses effectively.

How can parents support their child’s emotional transition to college?

Parents can support their child’s emotional transition by providing encouragement, being a listening ear, and helping them feel confident and excited about their new college life.

About the author

Ashley Kilroy

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.



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).

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


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 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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20
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A Guide to Crowdfunding Your Student Loans

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

If the price of higher education is giving you sticker shock, you’re not alone.

The average cost of tuition for 2024-25 was $11,610 for in-state residents at public colleges, and $30,780 for out-of-state students. At private colleges, the average tuition and fees totaled a whopping $43,350.

Most students end up taking out student loans to cover the cost of college. About 42.5 million Americans have federal student loan debt, with an average balance of $39,075 each. Combined, Americans now hold $1.814 trillion in student loan debt.

Paying off your loan may become a burden, especially if you opt for a career in public service, art, or another low-paying field. Your debt may also become unmanageable if you run into unexpected economic difficulties due to medical bills, losing your job, caring for a parent or child, or other challenges.

If more traditional student loan repayment plans aren’t working, you may want to think outside the box. One approach could be crowdfunding student loans. Here are some things to know about this creative way to tackle your debt.

What Is Crowdfunding?

Crowdfunding is the process of soliciting small contributions from multiple donors to meet a financial goal. Through online platforms like Kickstarter and GoFundMe, people have turned to crowdfunding to raise money for entrepreneurial ventures, medical crises, disaster victims, classroom supplies, and much more.

You can solicit donations from friends, family, and even complete strangers. By splitting the contributions among a large quantity of people, crowdfunding is a way to meet a big financial goal while not having to rely on finding one major source of funding.

Raising money online makes it easy to share your campaign widely and for people to easily contribute. Increasingly, people have been crowdfunding to pay off their debt, including fundraising for college. That can include textbooks, tuition, studying abroad, or living expenses — or, of course, student loans.



💡 Quick Tip: Enjoy no hidden fees and special member benefits when you refinance student loans with SoFi.

Take control of your student loans.
Ditch student loan debt for good.

Sites for Crowdfunding Your Student Loan Repayment

There are a number of sites that allow you to set up a crowdfunding campaign so you can pay off your student loans. Before you sign up, you’ll want to make sure that you understand all the rules and fees that you might encounter during the process.

Here are some crowdfunding sites to look into:

GoFundMe: GoFundMe is perhaps the best-known crowdfunding platform out there. Setting up a fundraiser is easy. Once you have a GoFundMe account and set a goal, you’re encouraged to tell your personal story of why you’re raising money and add a photo or video. Then you can share the campaign with your network of family, friends, coworkers, followers on social media, etc. Once your GoFundMe page starts raising money, you can start withdrawing it. While GoFundMe doesn’t charge fees for setting up a page, there are transaction fees (2.9% + $0.30, which includes debit and credit charges).

Rally.org: Rally.org works a lot like GoFundMe. Once you have an account, you can set a goal, tell your story, and then start sharing with friends and family. Like GoFundMe, you can start withdrawing money as soon as people start donating to your fundraiser. There’s one big difference between Rally.org and GoFundMe: the fees. While there’s only transaction fees on GoFundMe fundraisers, Rally.org charges 5% + credit card fees (2.9% + 30 cents) for each donation processed. That 5% can make it harder for you to reach your fundraising goal.

Gift of College: If you’re not looking to launch a full-blown crowdfunding campaign, but you do want to make it easier for friends or family to help you pay off your student loans in the form of gifts at birthdays, holidays, or graduation, you might consider an account with Gift of College. To get started, you set up an account and link your student loan account. Then you can share your profile with friends and family to encourage them to buy you Gift of College gift cards for special occasions. It’s free to set up a Gift of College account, but there is a 5% processing/service fee charged to the gift giver for every gift card they buy (though the fee is capped at $15 per transaction). Gift of College can also be attached to 529 accounts.

Is Crowdfunding for Repaying Student Loans a Good Idea?

There are pros and cons to turning to the crowdfunding model as a way of making a dent in your student loan debt.

Pros

Let’s start with the positives. If your campaign is successful, it’s an easy way to earn money to pay off your debt, and you don’t have to do much in return. Earning and saving the same amount through a job would likely take much longer, depending on your living expenses.

Similar to a wedding registry, a crowdfunding site also makes it less awkward to ask people in your life for help, compared to just asking for money outright. You probably have lots of loved ones who would like to help you but don’t have an easy way to do it.

Another perk is that obtaining a lump sum and putting it toward your loan principal can greatly reduce the interest that accumulates and the amount you owe over the life of the loan. Finally, crowdfunding often works. There are many examples of successful campaigns out there to inspire you.

Cons

There are some downsides to consider. One is that a crowdfunding effort is likely to get you a chunk of money once, rather than a regular stream of funding.

Considering the size of most student loans, and how interest adds up over time, you may not raise enough money to pay off the entire loan. So you’ll still have to figure out a way to consistently make your monthly payments.

Also, how much you may earn is unpredictable — it depends on the strength of your campaign and the size of your network, plus the generosity of donors, so it’s a bit risky to rely on this to stay solvent.

Another con is that depending on the size of the donation, you may need to pay taxes on the money, so you wouldn’t get to keep the entire amount you raise. Finally, even though a specialized crowdfunding site makes it easier, it may still feel uncomfortable to ask people you know for money, especially if they are facing their own debts and financial challenges.

How to Set Up a Crowdfunding Campaign

Pick a crowdfunding platform: First, you need to pick a crowdfunding site to use. Review the terms carefully so you understand how the process works. You’ll want to see if the platform keeps a percentage of funds donated, what processing fees are charged, whether it allows employers or the general public to contribute, and whether the money goes to your lender directly or comes to you in the form of cash.

Set a reasonable goal: If your fundraising goal sounds impossibly high, it could prevent some people from donating. Starting with a number that’s ambitious but reasonable may help, even if it means asking for less than your total student loan amount.

Build trust with your funders: You need to spell out what you are going to do with the money. Potential donors likely want to know what, exactly, their gift is supporting. And they probably want to be sure it will actually go toward student loans and not other expenses. Making it clear how exactly you will pay off the loan and how you will hold yourself accountable to donors can go a long way toward building trust.

Tell your personal story: People may be more likely to support you if they understand the impact they can have on your life. Telling your unique story can help make their gift about more than just debt. You could describe your past accomplishments and future goals, as well as how the support will help you achieve them. Try putting up photos and a video to help people connect with your goals emotionally.

Leverage your network: In order to have a successful campaign you’ll need to share with people you know through email and social media. You might want to tie the campaign to a special occasion, such as your birthday or graduation. You can ask your network to share on their channels as well.

Keep the momentum going: A successful campaign doesn’t end when you launch. Posting updates on your crowdfunding page regularly will keep people interested and remind them to donate could help you reach your goal.

Express gratitude: People are doing you a favor when you donate, so thank them early and often! It will make them feel good about their gifts and perhaps even encourage them to share your campaign or donate more down the line.

Thinking About Student Loan Refinancing

If you can fund your student loan debt in full through crowdfunding, congratulations! But most people can’t depend on this as a long-term strategy and will need to find additional ways to pay off the rest of their balance.

If you’re still struggling with student debt, refinancing your student loans may be another way to make your loans more affordable. You can refinance federal loans, private loans, or a mix of both by taking out a new loan with a private lender like SoFi and using it to pay off your old ones. Note that if you do refinance federal loans with a private lender, you will lose eligibility for federal student loan benefits like deferment and income-driven repayment.

You may be able to qualify for a lower interest rate or lower monthly payments, depending on your credit history and income. Note that you may pay more interest over the life of the loan if you refinance with an extended term. It could be worth checking what rates you’d qualify for by applying for pre-qualification online.

If you refinance with SoFi, membership includes financial planning and protection during periods of unemployment for those who qualify. Plus there are no hidden fees.

The Takeaway

With student debt growing exponentially, it’s worth considering creative solutions. Crowdfunding can be a relatively easy way to make a dent in your student loans without investing a lot of time. But for most people, it won’t be enough to eliminate their debt completely.

For alternative strategies, review your options for repayment plans and forgiveness programs. You may also consider refinancing for new rates and terms, especially if you don’t need access to federal benefits.

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.

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.


Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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.

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.
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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Aug
20
2025
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Should I Use the Standard 10-Year Repayment Plan?

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

When it comes time to repay your federal student loans, you have to decide what kind of payment plan you want to be on. All borrowers qualify for the Standard Repayment Plan, which currently ensures you pay off your loan within 10 years. Starting in the summer of 2026, a new Standard Repayment Plan will be introduced and will require fixed payments over 10 to 25 years, depending on your loan amount.

The Standard Plan isn’t the only option available, and it might not be the best choice for your financial needs. By learning more about the Standard Repayment Plan, you can decide if it’s the right choice for you or you want to go a different route.

What Is the Standard Repayment Plan for Student Loans?

Upon graduation from college or if you drop below half-time enrollment, you have a six-month grace period for the Direct Loan program (nine months for a federal Perkins Loan) when you don’t have to make payments.

Once that ends, you’ll begin the Standard Repayment Plan, the default for all federal student loan borrowers once they have left school. That’s unless you choose a different plan. Let’s start by looking at the standard plan, which currently sets your monthly payments at a certain amount so that you will have your loans paid off within 10 years.

Recommended: Getting to Know Your Student Loan Repayment Options

Standard Repayment Plan Eligibility

Unlike some other federal student loan repayment plans, all borrowers are eligible for the standard plan.

Loans That Are Eligible

Federal Family Education Loan (FFEL) Program loans and Direct Loans qualify for the Standard Repayment Plan. They include:

•   Direct Subsidized and Unsubsidized Loans

•   Direct PLUS Loans

•   Direct Consolidation Loans

•   FFEL consolidation loans

•   FFEL PLUS loans

Keep in mind that you will only be able to use the Standard Repayment Plan if you have federal student loans, not private student loans.


💡 Quick Tip: Get flexible terms and competitive rates when you refinance your student loan with SoFi.

How Does the Standard Repayment Plan Work?

With the Standard Repayment Plan, borrowers currently pay fixed monthly payments for 10 years. Because the plan offers a relatively short repayment period and monthly payments don’t change, you will save more money in interest than longer repayment plans.

For example, if you just graduated with the average federal student loan debt of $39,075 at 6.39% interest, you’ll pay $13,905.58 in total interest. Expanding to 25 years at the same rate will lower your monthly payment by almost half, but you’ll end up paying $39,272.31 in total interest.

There’s a variation on the 10-year plan: the graduated repayment plan. Under this plan, repayments start low, and every two years, your payments increase. This is a good option for recent graduates who may have lower starting salaries but expect to see their pay increase substantially over 10 years.

Note that the Standard Repayment Plan will change for loans taken out on or after July 1, 2026. The refashioned plan will still have fixed payments, but the repayment term will be based on the loan amount, from 10 years for less than $25,000 to 25 years for more than $100,000.

Recommended: Student Loan Payment Calculator

Payments on the Standard Plan

What may make the Standard Repayment Plan less appealing to some borrowers is that payments will likely be higher than on any other federal repayment plan because of the short loan term.

For people with a large amount of student debt or high interest rates, the monthly payments can be daunting or unmanageable. You might face sticker shock when you receive your first bill after your grace period, so don’t let it come as a surprise.

To determine if the Standard Repayment Plan is a good option for you, you can use the federal Loan Simulator to calculate student loan payments. Or contact your loan servicer before your first payment is due to see how much you will owe each month.

Changing Your Repayment Schedule

If you want to change your repayment schedule or plan, call your loan servicer and see what they can do.

You’ll need to contact each loan servicer if you took out more than one loan and want to change repayment schedules. You can change your federal student loan repayment plan at any time, free of charge.

What Are the Pros and Cons of the Standard Repayment Plan?

There are upsides and downsides to weigh when considering the Standard Repayment Plan.

Pros

You will pay off your loans in less time than you would with other types of federal repayment plans, which may allow you to set aside money for things like purchasing a home.

You’ll save money on interest, since you’re paying your loan back faster than you would on other federal plans.

The plan offers predictability. Payments are the same amount every month.

You don’t need to recertify your loan every year to prove your eligibility.

Cons

Your monthly payments will probably be higher than payments made under other student loan repayment plans with extended repayment periods.

Your monthly payments are based on the number of years it will take you to repay the loan, not on how much you can afford, as with income-driven repayment plans.

With the Income-Based Repayment plan, your remaining balance will be forgiven after you make a certain number of eligible payments over 20 to 25 years.

The Takeaway

The federal Standard Repayment Plan of 10 years could be right for you if you’re able to keep up with payments and you want to pay off your debt quickly. (Be aware that the Standard Plan will be changing for loans taken out on or after July 1, 2026.)

Another option is to refinance your student loans to improve your interest rate and possibly change your loan term. Just realize that refinancing federal student loans into a private student loan means giving up federal benefits like income-driven repayment and loan forgiveness. Refinancing with an extended term could also increase your total interest charges.

If refinancing makes sense for you, it could save you money over the life of your loans and potentially allow you to pay your debt back faster.

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.

About the author

Kylie Ora Lobell

Kylie Ora Lobell

Kylie Ora Lobell is a personal finance writer who covers topics such as credit cards, loans, investing, and budgeting. She has worked for major brands such as Mastercard and Visa, and her work has been featured by MoneyGeek, Slickdeals, TaxAct, and LegalZoom. Read full bio.


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.


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.
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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Aug
19
2025
Math Degree: How You Can Use It & How to Pay For It

Math Degree: Is It Worth the Cost?

By | Building Your Career, Life & Career, student_loan | Comments Off on Math Degree: Is It Worth the Cost?

College is more expensive than ever, making it more important for college students to determine ahead of time whether their degree is worth the cost. Math degrees are often worth the cost as they allow alumni to pursue many lucrative careers.

Math majors can be mathematicians, but they can also pursue analytical professions. Many of those career paths lead to high-paying jobs, but some pay more than others. Salaries depend in large part on the type of math degree you have and the career path you choose.

Keep reading to learn more on math degrees, including the different types of math degrees, what jobs you can get with a math degree, and more.

Key Points

•   A math degree can lead to diverse career opportunities in fields like finance, technology, and education.

•   Types of math degrees include associate degrees, bachelor’s degrees, master’s degrees, and doctoral degrees.

•   Scholarships and grants are available to help cover the cost of a math degree, reducing financial burden.

•   Part-time jobs and internships in math-related industries can provide income and valuable experience.

•   Federal and private loans are options for funding, but should be considered carefully due to potential debt.

What Is a Degree in Math?

A degree in math is one that students earn by studying various mathematical disciplines, such as algebra, calculus, statistics, set theory, and stochastics. Math majors might also study applied mathematics, which is more theoretical in nature.

Those who earn math degrees develop the analytical skills necessary to solve real-world problems. The problem-solving skills that math students learn is one of the reasons they do well in fields beyond mathematics itself.

There are many types of math degrees that can lead to an even greater number of career paths. This has led to a slate of fast-growing fields for math program graduates, some of which make a math degree well worth it.

What Kinds of Math Degrees Are There?

Students who want to pursue a math degree have options throughout the post-secondary education system, ranging from associate degrees to doctoral degrees.

Associate Degree in Math

An associate degree in math is one that students can often complete in two years or less. These degrees are often earned at community colleges and usually require about 60 credit hours.

Associate degrees in mathematics are a great way for math majors to start their academic journey. Those who earn associate degrees in math often enroll in four-year colleges; credit hours from associate degree programs can be transferable to four-year math degree programs.

Bachelor’s Degree in Math

A bachelor’s degree in math is an undergraduate degree that provides training in both applied and core mathematics. These are generally four-year degrees requiring 120 credit hours.

Students will be expected to analyze and solve problems, construct mathematical solutions, and apply mathematical solutions to real-world problems. Students can pay for these degrees with undergraduate private student loans.

Master’s Degree in Math

A master’s degree in math is a graduate-level degree that may offer more specialized training in mathematics. These degrees usually take about two years to complete and prepare you for a career in either a teaching position or an industry job.

It may involve basic courses in real analysis and linear algebra. Later, you may complete fundamental courses such as probability, scientific computing, and differential equations. Students can pay for these degrees with graduate loans.

Doctoral Degree in Math

A doctoral degree in mathematics is typically a Ph.D. program that takes five to six years to complete. There might also be graduate school requirements that students must complete, plus a residency.

The curriculum for a doctoral degree might involve courses in the areas of algebra, analysis, and topology. There are also exams, a dissertation, and a thesis to complete.

Recommended: 25 Highest Paying Jobs in the US

Are Finance and Math Degrees the Same?

Math and finance degrees are both analytical in nature, and both math and finance majors are likely to engage in quantitative analysis as a part of their professions. Despite the overlap in skills, though, the two degrees are not the same.

Both math and finance majors might enroll in introductory mathematics courses, such as Calculus I. But beyond the basic courses, the two majors usually diverge. Math majors will learn more complex mathematical theory, while finance majors’ curricula will be more focused on business.

What Jobs Can You Get With a Mathematics Degree?

One of the best things about mathematics degrees is the number of career paths that may follow. Mathematics majors can be math teachers or mathematicians, but they can also have several other types of roles.

Computer and Information Research Scientists

Computer and information research scientists find ways to use new and existing technology. They study and solve complex problems in business, science, medicine, and other fields.

Physicists

Physicists study the interactions of matter and energy. They might design and perform experiments with sophisticated equipment such as particle accelerators, lasers, or electron microscopes.

Actuaries

Actuaries analyze the financial costs of risk and uncertainty. This makes them essential to the insurance industry. They use mathematics, financial theory, and statistics to assess the risk of potential events.

Mathematicians and Statisticians

Mathematicians and statisticians analyze data, applying computational methods to solve practical problems in the areas of business, engineering, science, and other fields. They develop mathematical or statistical models to analyze data.

Mathematics College Professors

Mathematics college professors teach courses around mathematical concepts, statistics, and actuarial science. They also teach courses on the application of mathematical techniques in solving specific problems.

Mathematics High School Teachers

Mathematics high school teachers plan and teach math lessons to students in secondary education. Their primary responsibilities include grading assignments and quizzes and tracking students’ progress.

What Is the Average Salary if You Have a Math Degree?

Math occupations had a median annual wage of $104,620 in May 2024, according to the Bureau of Labor Statistics. However, some math majors earn more than others.

For example, actuaries have a median pay of $125,770, while mathematicians and statisticians have a median of $104,350. Not only that, but actuaries also need just a bachelor’s degree for entry-level positions, while mathematicians and statisticians need at least a master’s degree.

Ways to Pay for a Math Degree

Much like other types of degrees, there are multiple ways to pay for a math degree. That includes financial aid, merit-based scholarships, 529 plans, and more.

Financial Aid

Financial aid is one of the most common ways to pay for college. Grants vs. scholarships vs. loans are three large umbrellas of federal financial aid. Grants and scholarships are both considered gift aid which students are typically not required to repay. Federal student loans do require repayment.

Federal student loans have many benefits for borrowers, such as income-based repayment (IBR) plans and Public Service Loan Forgiveness (PSLF). To apply for financial aid, students will need to fill out the Free Application for Federal Student Aid (FAFSA®) yearly.

Merit-Based Scholarships and Grants

There are thousands of scholarships and grants that may be available to students pursuing a math degree. These scholarships range from amounts of just a few dollars up to covering the entire cost of college.

One of the biggest benefits of scholarships and grants is that unlike student loans, they usually don’t have to be repaid. While “merit-based” often refers to academic merit, it can be based on other criteria, such as athletics or leadership.

With so many scholarships available, you may want to leverage a combination of resources to find relevant opportunities. For example, you can contact your school’s financial aid office and check with federal and state agencies. The U.S. Department of Labor also has a scholarship search tool available.

Recommended: SoFi’s Scholarship Search Tool

529 Plans

529 plans are college savings plans sponsored by a state or state agency. These plans are investment accounts that offer tax benefits and can cover qualifying education expenses such as tuition and textbooks.

529 plans are often opened by parents to save for their children’s future college education, but anyone 18 and over can open an account. You can even open an account for yourself and still take advantage of the tax benefits they offer.

Personal Savings

Personal savings is always an option when paying for your math degree. While it isn’t “free money” like a scholarship or grant, personal savings can help in some situations.

For example, certain expenses don’t qualify for the tax benefits of a 529 plan, such as entrance exams and test prep. You might decide to use your personal savings for non-qualified expenses and reserve your 529 for qualified expenses.

Private Student Loans

Private student loans are available from private financial institutions. You can qualify as long as you meet certain requirements, such as being enrolled in an eligible school and meeting credit and income criteria. Private student loans may offer lower interest rates for qualifying borrowers than federal student loans, but may also lack some of the protections that federal student loans offer.

The Takeaway

Math degrees are a strong choice for incoming college students, as they are highly valued not only in mathematics but also in fields like finance and technology. Those pursuing a math degree can earn degrees ranging from associate degrees up to doctoral degrees.

To pay for a math degree, students rely on cash savings, 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.


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

FAQ

What can you do with a mathematics degree?

Math degrees allow people to pursue careers not only as mathematicians and teachers but also as actuaries, physicists, and computer scientists.

What are degrees in math?

Math degrees allow students to study and apply concepts learned in mathematical disciplines such as algebra, calculus, and statistics. In doing so, students learn analytical skills they can apply in solving real-world problems.

How can I pay for a math degree?

To pay for a math degree, consider scholarships, grants, and financial aid. Explore part-time jobs, internships, and work-study programs. Look into federal loans and private financing options. Additionally, many universities offer specific math department scholarships or assistantships.

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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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Guide to Getting a Low APR on a Car Loan

By | ALR, Budgeting & Goals | Comments Off on Guide to Getting a Low APR on a Car Loan

If you’re looking to get a great deal on a new or used car, you’ll likely need to do more than negotiate a good price with the dealer. Unless you’re paying all cash, you’ll also need to get a great deal on your auto loan.

Lowering the annual percentage rate (APR) of a car loan is one of the best ways to save on vehicle financing and the total cost of buying a car. Even just a 1% difference in your APR could add up to hundreds of dollars in savings over the life of the loan. Loan APRs vary with the lender, so it can pay to shop around.

Keep reading to learn more on car loan APRs, how to get a lower APR, what’s considered a good APR on an auto loan, and more.

Key Points

•   A higher credit score can significantly lower your APR, so focus on paying bills on time, reducing credit card balances, and addressing any errors on your credit report.

•   Don’t settle for the first offer you receive. Compare rates from multiple lenders, including banks, credit unions, and online lenders, to find the best deal.

•   If your credit score is not strong, adding a cosigner with a good credit history can help you secure a lower APR.

•   Putting down a larger initial payment can reduce the loan amount and lower the risk for the lender, potentially resulting in a lower APR.

•   Don’t be afraid to negotiate the terms of your car loan. Some lenders may be willing to offer a better rate if you show you are a responsible borrower.

What Is APR?

When shopping for a car loan, it’s important to understand that APR and interest rate are two different things.

Interest rate refers to the annual cost of a loan to a borrower and is expressed as a percentage. APR is the annual cost of a loan to a borrower — including fees — and is also expressed as a percentage.

Why the distinction? The APR is intended to give you more information about what you’re really paying. The federal Truth in Lending Act requires that every consumer loan agreement disclose the APR. Since all lenders must follow the same rules to ensure the accuracy of the APR, borrowers can use the APR as a good basis for comparing loan offers apples to apples.

How APR Works for Auto Loans

The way auto loans work is that the APR you pay accounts for your car loan interest charges plus all other fees you have to pay to get your loan. In general, borrowers with higher credit scores will qualify for loans with lower APRs. Lenders view borrowers with poor credit as being more likely to default on their loans. To compensate for this risk, they will often charge these borrowers higher APRs.

The total amount of a loan and the length of the loan (called the loan’s term) can also impact a car loan’s APR. Lenders typically charge a higher APR for larger loans, as well as longer term loans, since they represent higher risk.

Recommended: How to Calculate APR on a Car Loan

Can You Negotiate APR on a Car Loan?

Yes, in many cases, the APR on your car loan is negotiable. In fact, the first interest rate that dealers quote you may not be the lowest that you actually could qualify for, so negotiating is often a good idea. A lower APR can lower your auto loan payments.

Recommended: Guide to Car Loan Modification

Tips for Getting a Low APR on a Car Loan

To help get the lowest interest rate on a car loan, consider the following steps.

Build Your Credit

Your credit score has a major impact on the APR a lender will offer you on a car loan. You often need a score in the mid-600s to qualify for an auto loan, and above 700 for the best rates. You may be able to get your score for free on your credit card statement or online account, or you can buy it from a credit reporting agency.

If your credit is less than ideal, consider taking some steps to build your credit before you apply for a car loan. Things that can help include making your debt payments on time, paying down your debt, and making sure you aren’t getting close to your credit limit. Applying for new credit triggers a hard credit pull, which can temporarily dink your score, so also be sure you only apply for the credit you really need.

Shop Around

Rather than assume you’re getting the best rate and terms from the dealer, it can be wise to do some loan scouting on your own. Many lenders will show you preapproved rates and terms online after you fill out a short application. This generates a soft credit pull, which won’t impact your credit.

Taking the time to get quotes from different lenders (both local and online) can help you find a great deal. It can also give you more leverage in negotiations because you’ll understand the going rates with your particular credit score for the car you’re interested in.

Make a Bigger Down Payment

Auto lenders often require borrowers to make a down payment on the loan. Doing so makes the buyer put more skin in the game and reduces the likelihood that they’ll default on the loan (since their own money is at stake, too). The larger your down payment, the less risk you pose to the lender and the lower an APR they’re likely to offer you. You’ll also pay less in total interest because the overall amount you need to borrow will be lower.

Choose a Shorter Term

Banks generally see loans with longer terms as riskier than loans with shorter terms. That’s because they worry borrowers are more likely to default in the long run. They encourage shorter terms by offering lower APRs. Be aware that shorter terms usually mean you’ll have a higher monthly payment.

Use a Cosigner

If you have poor or thin credit and you’re having trouble finding a loan with an affordable APR, you might consider using a cosigner who has better credit than you do. Cosigners are typically family members or close friends, and they agree to make loan payments if you can’t. This stop-gap measure means banks are less worried about a default and may offer you a lower APR.

Borrow Less

Buyers who need to borrow less money are less risky to lenders and may qualify for lower APRs. You can borrow less by choosing a cheaper vehicle, buying used instead of new, or forgoing expensive add-ons and trim levels. You may also be able to borrow less by negotiating a lower purchase price with the dealer.

What Is Considered a Good APR on a Car Loan?

The average car loan APR in Q1 2025 for new cars was 6.73% and for used cars was 11.87%, according to Experian®. Borrowers with the highest credit scores typically qualify for the lowest rates. For example, buyers with excellent credit — scores in the 780 to 850 range — may be able to qualify for new car loan rates closer to 5%. If you have poor credit, on the other hand, you may need to pay more than the average APR for a car loan.

Recommended: Average Car Loan Interest Rate by Credit Score

Other Ways to Lower Your Interest Rate

Even if you already have a car loan, there are ways you may be able to lower the amount of interest you pay.

Prepay Your Loan

One option is to prepay your loan. Auto lenders typically calculate the interest you owe based on your loan balance. By making extra payments, you can reduce your balance and, in turn, the amount of interest you’ll pay. This strategy doesn’t change your APR, but it can reduce the overall cost of your loan. Check to see if your lender charges prepayment penalties that might outweigh the savings you’d receive from prepaying.

Refinance Your Loan

To actually lower your APR, you may want to look into refinancing your car loan. When you refinance, you take out a new loan (ideally with better rates or terms) and use it to pay off your old loan. If interest rates have dropped or you’ve built your credit, you may be able to qualify for a new loan with a lower rate. Shortening your loan term, on the other hand, can reduce the total amount of interest you’ll pay, even if you don’t qualify for a lower APR.

Recommended: What Should Your Average Car Payment Be?

The Takeaway

The interest and fees you pay over the life of an auto loan have a big impact on the overall cost on the vehicle. Understanding how the APR on an auto loan works can help you get a lower rate on a car loan.

If you already have a loan and you’re not happy with your rate, you might want to shop around and compare refinancing offers from multiple lenders.

If you’re seeking auto loan refinancing, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your car in minutes.


With SoFi’s marketplace, you can quickly shop and explore options to refinance your vehicle.

FAQ

How can I lower my APR on a car loan?

You may be able to get a better annual percentage rate (APR) on a car loan by:

•   Building your credit

•   Making a larger down payment

•   Going with a shorter loan term

•   Negotiating a lower sales price

•   Shopping around for a lender

•   Using a cosigner

•   Refinancing your loan

Can you get 0% APR on a car loan?

Yes, dealers will sometimes offer car loans with a 0% annual percentage rate (APR). These deals are designed to incentivize customers to purchase brand new cars, which generally sell at a significantly higher cost than used vehicles. To qualify for one of these promotions, you usually need to have excellent credit.

What is a good APR for a car loan?

The annual percentage rate (APR) on a car loan will vary depending on your credit score, the lender, and the terms of the loan. On average, interest rates are close to 7% for new car loans and 12% for used car loans.

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

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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