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Becoming a nurse can be a rewarding career path, but the cost of nursing school is a major obstacle for many students. Between tuition, books, clinical fees, and living expenses, costs can quickly add up.

Fortunately, nursing students have access to a wide range of funding options. From federal aid and scholarships to employer-sponsored programs and military service, there are many ways to reduce out-of-pocket costs and long-term debt. Many students use a combination of funding sources rather than relying on just one. Understanding your options can help you reduce debt and make smarter financial decisions as you pursue your nursing degree.

1. Start With the FAFSA

The Free Application for Federal Student Aid (FAFSA®) is a key first step for anyone planning to attend nursing school. Completing the FAFSA determines your eligibility for federal student aid, including grants, federal student loans, work-study programs, and some state-based aid. Many nursing schools also use the FAFSA to award their own institutional grants and scholarships.

If you are a dependent undergraduate, you’ll need to report your parent’s financial information. For federal student aid purposes, all graduate or professional students are automatically considered independent. Because of this independent status, you generally do not need to provide parental information on your graduate school FAFSA, even if you still live with them or they claim you as a dependent on their taxes.

You can list up to 20 schools on the online FAFSA form. Be sure to add any nursing colleges you’re considering, even if you haven’t applied or been accepted yet.

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

2. Nursing School Scholarships

Scholarships are one of the most effective ways to pay for nursing school because they do not need to be repaid. There are thousands of scholarships available specifically for nursing students, offered by professional associations, health care organizations, nonprofit foundations, private companies, and educational institutions.

Some nursing scholarships reward academic excellence and leadership, while others assist students with financial need or focus on specific groups, such as veterans, first-generation students, and those seeking to work in underserved communities.

Scholarships can range anywhere from a few hundred to $10,000-plus. While individual awards may not cover all costs, applying for multiple scholarships can significantly reduce reliance on loans. Many students underestimate how much scholarship funding they can accumulate by consistently applying each year.

3. Grants for Nursing School

Grants are another valuable source of funding that does not require repayment. The most common federal grant is the Pell Grant, which is awarded to undergraduate students with exceptional financial need, with a lifetime eligibility limit equivalent to six years (12 semesters).

In addition to federal grants, many states offer grant programs designed to encourage students to enter high-demand fields like nursing. Some schools also provide institutional grants based on financial need or academic performance.

Unlike loans, grants are limited by available funding, making it important to submit the FAFSA as early as possible. Grants can be used to cover tuition, fees, books, and sometimes housing costs, and can help students minimize debt.

4. Federal Student Loans

When scholarships and grants aren’t enough to cover the full cost of nursing school, federal student loans are often the next option. These loans typically offer lower interest rates, more flexible repayment options, and better borrower protections than private loans. You apply for federal student loans by submitting the FAFSA.

Types of Federal Loans

There are three main types of federal student loans: Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.

Direct Subsidized Loans

Direct Subsidized Loans are available to undergraduate students with demonstrated financial need. The key benefit of subsidized loans is that the federal government pays the interest while you’re in school at least half-time, during the six-month grace period after you graduate, and during approved deferments. This can save nursing students a significant amount of money over time.

Direct Unsubsidized Loans

Direct Unsubsidized Loans are available to undergraduate and graduate nursing students regardless of financial need. Interest begins accruing as soon as the loan is disbursed, but students can choose to defer payments while in school. These loans offer fixed interest rates and access to federal repayment programs.

Direct PLUS Loans

Direct PLUS Loans have traditionally been available to graduate and professional students, as well as to parents of dependent undergraduate students. However, as of July 2026, Grad PLUS loans will no longer be available to new borrowers. Students pursuing graduate nursing degrees — such as a Master of Science in Nursing (MSN) or Doctor of Nursing Practice (DNP) — will have access only to Direct Unsubsidized Loans.

Direct PLUS loans remain available to parents of undergraduate students. The maximum amount they can borrow is the cost of attendance at the nursing school you attend minus any financial aid you receive. However, PLUS loans have relatively high interest rates and fees compared to other federal loans.

💡 Quick Tip: Parents and sponsors with strong credit and income may find more-competitive rates on no-fees-required private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

Student Loan Forgiveness for Nurses

One major advantage of federal student loans is access to loan forgiveness programs. Nurses working in nonprofit hospitals, government facilities, or public health organizations may qualify for Public Service Loan Forgiveness (PSLF). Under PSLF, remaining loan balances can be forgiven after 120 qualifying monthly payments (typically 10 years) while working for an eligible employer.

Some state and federal programs offer loan repayment assistance or forgiveness for nurses who work in high-need or underserved areas, making federal loans more attractive for those committed to public service. For example, the federal Nurse Corps Loan Repayment Program repays a significant portion of education loans for nurses in exchange for two years of service at a critical shortage facility or eligible nursing school (more on this program below).

Student Loan Payment Deferrals

Federal loans allow for payment deferrals while you’re enrolled in school at least half-time. After graduation, borrowers typically receive a six-month grace period before payments are due. In certain circumstances, such as economic hardship or further education, additional deferment may be available.

Income-Driven Repayment Plan for Nurses

Income-driven repayment (IDR) plans base your monthly loan payments on your income and household size rather than the total loan balance. After 20 to 30 years of qualifying payments, any remaining balance may be forgiven, depending on the plan.

Beginning in July 2026, new federal student loan borrowers will only have access to the Repayment Assistance Plan (RAP). RAP is designed to cap payments at an affordable percentage of income and provides forgiveness after 30 years of repayment. For nurses entering the workforce with high debt levels and modest salaries, IDR plans can make payments more manageable.

5. Private Student Loans

Private student loans can help fill funding gaps when federal aid does not fully cover nursing school costs. These loans are offered by banks, credit unions, and online lenders, and terms vary widely based on credit and income. You can find private undergraduate loans, as well as graduate student loans.

Private Student Loans vs Federal Student Loans

While federal student loans offer fixed interest rates and robust protections — such as income-driven repayment, deferment, and forgiveness — their annual and lifetime limits may not cover the full cost of nursing school.

In contrast, private loans can bridge these funding gaps by allowing students to borrow up to the total cost of attendance. However, private loan approval and rates depend heavily on creditworthiness and often require a cosigner to secure competitive terms. They also lack the flexible safety nets found in federal programs.

Choosing the Right Lender for Nursing School

If you decide to use private loans, it’s important to compare lenders carefully. Look at interest rates, repayment terms, borrower benefits, and customer reviews. Some lenders offer specialized rates, discounts, or specific loan products for students in health care professions. Taking time to shop around can help reduce the long-term cost of borrowing.

Recommended: Student Loan Payment Calculator

6. Tuition Reimbursement Programs

A tuition reimbursement program is an employer-provided benefit that allows students to receive partial or full reimbursement for education costs after completing coursework. These programs are often offered by health care employers and can significantly reduce nursing school expenses.

Reimbursement amounts and eligibility rules vary, but many programs require you to work for the employer while in school or commit to continued employment after graduation. While reimbursement may not cover upfront costs, it can ease the financial burden over time

7. Hospitals/Employers That Pay for Nursing School

Many hospitals and health care systems actively invest in educating future nurses to address staffing shortages and improve patient care. These employer-sponsored programs can cover a large portion — or even all — of nursing school tuition up front or help employees repay their nursing school loans.

Health System Partnerships With Nursing Programs

Some hospitals partner directly with nursing schools to create pipeline programs. Students may receive discounted tuition, guaranteed clinical placements, or job offers upon graduation. These partnerships can benefit both students and employers by ensuring a steady supply of trained nurses.

Work Commitments in Exchange for Tuition Coverage

Tuition assistance programs typically come with a work commitment. Graduates may be required to work for the employer or sponsoring hospital for a set number of years. While this limits short-term job flexibility, it provides financial stability and guaranteed employment after graduation.

8. Getting a Nursing Degree Abroad

Another option some students consider is earning a nursing degree abroad. In certain countries, tuition and living costs may be significantly lower than in the U.S. Many international nursing programs are also shorter (such as three years instead of four for a Bachelor of Nursing degree), allowing you to enter the workforce faster.

Cost Comparisons and Accreditation Considerations

If you’re thinking about getting a nursing degree abroad, you’ll want to make sure the program meets U.S. licensing requirements and prepares you to pass the NCLEX-RN exam. It’s also important to factor in additional costs — such as credential evaluations and moving expenses (e.g., visas and flights) — to accurately compare the cost to a U.S. program.

9. Military Service

The U.S. military heavily subsidizes or fully pays for nursing school in exchange for service commitments. Options include:

•   The Army Health Care Education Reimbursement Program

•   Navy Nurse Candidate Program (NCP)

•   Air Force Health Professional Scholarship Program

These programs are designed to recruit and train nurses and other health care professionals, and many offer 100% of tuition and fees, sign-on bonuses, and monthly stipends.

ROTC and Nursing Student Incentives

Army ROTC Nursing scholarships provide comprehensive financial support, including full tuition and fees (or room and board), $1,200 annually for books, and a $420 monthly tax-free stipend. Nursing-specific benefits include paid NCLEX-RN review fees, test fees, uniforms, and clinical supplies.

If you’re interested in ROTC, it’s recommended that you join the program as a freshman or sophomore in nursing school. Upon graduation, you are required to serve as an army nurse and officer for four years.

10. Nurse Corps Program

The Nurse Corps program is a federal initiative aimed at addressing nursing shortages in underserved communities. It includes two programs that can help you pay for nursing school:

•   The Nurse Corps Scholarship Program covers tuition, fees, and other educational costs for eligible nursing students. In return, after graduation, you work at an eligible health care facility with a critical shortage of nurses for two years. To apply, you must be an accepted or enrolled student in a nursing degree program at a U.S. accredited school of nursing.

•   The Nurse Corps Loan Repayment Program will pay up to 85% of unpaid nursing education debt in exchange for at least two years of service at an eligible health care facility with a critical shortage of nurses or an eligible school of nursing. You can apply to the Nurse Corps Loan Repayment Program if you are a registered nurse (RN), advanced practice registered nurse (APRN), or nurse faculty.

Deciding Which Route to Pursue

With so many options available, choosing how to pay for nursing school can feel overwhelming. The right approach will depend on your financial situation, career goals, and willingness to make service or work commitments

Comparing Costs, Commitments, and Career Goals

Some funding options reduce costs upfront but require long-term commitments, while others offer flexibility but lead to higher debt. Weighing total costs, repayment obligations, and career preferences can help you choose the best path.

Combining Multiple Funding Sources

Many nursing students use a mix of scholarships, grants, federal loans, and employer assistance. Strategically combining multiple funding sources can minimize debt while still covering the full cost of education.

Private Student Loans From SoFi

Nursing school is a significant investment, but there are a number of financial aid and career-based programs that can significantly reduce the cost. By starting with the FAFSA, seeking out scholarships and grants, understanding federal and private loan options, and exploring employer, military, or service-based programs, you can build a smart, flexible funding strategy that fits your goals. With careful planning, it’s possible to earn your nursing degree while keeping long-term financial stress to a minimum.

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

Can FAFSA be used for nursing school financial aid?

Yes, the Free Application for Federal Student Aid (FAFSA®) is essential for nursing school financial aid. By completing the FAFSA, you determine your eligibility for various federal student aid options, including grants (like the Pell Grant), federal student loans (subsidized and unsubsidized), and work-study programs.

Beyond federal aid, many nursing schools require a FAFSA on file to award their own institutional scholarships and need-based grants. To maximize your financial assistance, aim to file as early as possible.

Can an employer pay for you to attend nursing school?

Yes, many hospitals and health care employers offer tuition reimbursement programs and other forms of financial assistance for nursing students. These programs are often designed to address staffing shortages by helping current or future employees pay for school, often in exchange for a work commitment after graduation. This can significantly reduce the out-of-pocket cost of a nursing degree.

Can you use private student loans for nursing school?

Yes, you can use private student loans to pay for nursing school. Private loans, offered by banks, credit unions, and online lenders, are often used when federal aid, scholarships, and grants do not fully cover the cost of attendance.

Just keep in mind that interest rates are based on your (or your cosigner’s) credit score and may be higher than federal loans. Private loans also lack federal protections like income-driven repayment and forgiveness programs. As a result, it’s wise to max out federal options before going private.

What Is the Nurse Corps Loan Repayment Program?

The Nurse Corps Loan Repayment Program pays up to 85% of qualifying nursing education debt in exchange for a commitment to work for at least two years at an eligible health care facility experiencing a critical shortage of nurses, or at an eligible nursing school. The program is open to registered nurses (RNs), advanced practice registered nurses (APRNs), and nurse faculty.

Are there loan forgiveness programs specifically for nurses?

Yes, there are loan forgiveness programs for nurses, including:

•   Public Service Loan Forgiveness (PSLF): Available to nurses working full-time for eligible nonprofit or government organizations, PSLF forgives your remaining federal student loan balance after 120 qualifying payments.

•   Nurse Corps Loan Repayment Program: This program repays up to 85% of qualifying nursing education debt in exchange for a commitment to work for at least two years at an eligible critical shortage facility or nursing school.

•   State programs: Many states offer loan repayment assistance or forgiveness to nurses who agree to work in high-need or underserved areas within the state.

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Photo credit: iStock/FatCamera

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

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

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

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

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Pursuing a career in nursing can be both personally fulfilling and financially rewarding, but it also comes with significant upfront education costs. The price of nursing school varies widely depending on the degree level, institution type, and length of study. Understanding these costs ahead of time can help you plan realistically, compare programs, and avoid unnecessary debt.

Below we break down the average cost of nursing school by credential, explore additional fees students often overlook, and outline common ways nursing students pay for their education.

Typical Nursing School Costs and Salaries

Nursing education costs generally increase with each academic level, but so does earning potential. While you can access entry-level nursing roles with an associate degree, advanced degrees open the door to leadership, specialization, and higher salaries.

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

Associate Degree in Nursing (ADN)

An Associate Degree in Nursing (ADN) is one of the fastest and most affordable ways to become a registered nurse (RN). ADNs are offered by community colleges, private technical colleges, and some four‑year institutions, and typically take around two years to complete.

While ADN graduates often qualify for similar entry-level health care jobs as those with a Bachelor of Science in Nursing (BSN), the salary is generally lower and there may be less opportunity for advancement. Also, some hospitals require nurses to have a BSN.

Average cost of an ADN at a public school:

•   Annual tuition and fees: $3,000 – $12,000

•   Annual room and board: $7,000 – $9,000

•   Total cost for an ADN: $20,000 – $42,000

Average cost of an ADN at a private school:

•   Annual tuition and fees: $15,000 – $30,000

•   Annual room and board: $10,000 – $13,000+

•   Total cost for an ADN: $50,000 – $86,000+

Average ADN salary: $81,000

Bachelor of Science in Nursing (BSN)

A Bachelor of Science in Nursing is a four-year undergraduate degree that prepares students for Registered Nurse (RN) licensure and offers broader training in leadership, research, and public health. BSN programs are offered at public and private colleges nationwide.

BSN-prepared nurses often have access to more job opportunities, higher starting salaries, and greater long-term earning potential compared to nurses with ADNs.

Average cost of a BSN at a public school:

•   Annual tuition and fees: $15,000 – $30,000

•   Annual room and board: $12,000 – $14,000

•   Total cost for a BSN: $108,000 – $176,000

Average cost of a BSN at a private school:

•   Annual tuition and fees: $30,000 – $60,000+

•   Annual room and board: $13,000 – $16,000

•   Total cost for a BSN: $172,000 – $304,000+

Average BSN salary: $99,000

Master of Science in Nursing (MSN)

A Master of Science in Nursing (MSN) is a graduate-level degree that prepares registered nurses for advanced clinical practice, leadership, education, or administrative roles. For many nurses, an MSN is a gateway to advanced practice specialities, such as nurse practitioner, nurse midwife, clinical nurse specialist, or nurse anesthetist.

Depending on the school and entry point, students can pursue an MSN after a BSN or via an RN-to-MSN bridge program designed for nurses with an associate degree.

MSN programs typically take two years of full-time study to complete. Part-time options are also available for working nurses.

Average cost of an MSN at a public school:

•   Annual tuition and fees: $10,000 – $30,000

•   Total cost for an MSN degree: $20,000 – $60,000

Average cost of an MSN at a private school:

•   Annual tuition and fees: $20,000 – $50,000+

•   Total cost for an MSN degree: $40,000 – $100,000+

Average MSN salary: $109,000

Doctor of Nursing Practice (DNP)

A Doctor of Nursing Practice (DNP) is an advanced degree for nurses who want to reach the highest level of clinical practice. Unlike research-focused doctoral degrees (such as a Ph.D. in Nursing), the DNP prepares nurses for leadership roles by focusing on applying research to improve patient care, quality, and health care systems,

DNP programs typically require two to three years of full-time study beyond a BSN, though some schools offer BSN-to-DNP pathways that can vary in length. Part-time options are also available for working nurses.

Average cost of a DNP at a public school:

•   Annual tuition and fees: $20,000 – $45,000+

•   Total cost for a DNP (three years): $60,000 – $135,000+

Average cost of a DNP at a private school:

•   Annual tuition and fees: $30,000 – $80,000+

•   Total cost for a DNP (three years): $90,000 – $240,000+

Average DNP salary: $117,000

Other Fees While Studying to Be a Nurse

Tuition is only one part of the total cost of nursing school. Students also need to budget for a variety of additional expenses that can add up quickly over the course of a program.

Uniforms, Lab Fees, and Equipment

Nursing students are typically required to purchase textbooks, uniforms (scrubs), a stethoscope, and other supplies, which can add to the total cost of your education. Nursing schools also typically charge lab or clinical fees to fund the specialized equipment and simulation centers necessary for hands-on training.

Here’s a look at how these costs break down:

•   Lab fees: $100 – $500 per course

•   Books and supplies: Around $625 per term

•   Uniform: A set of scrubs can cost anywhere from $30 to over $100, depending on brand, fabric, and features.

Licensing Exam and Review Course Costs

After completing a nursing program, graduates must take and pass the NCLEX-RN licensing exam, which runs a couple of hundred dollars. Many graduates also invest in NCLEX review courses to increase their chances of passing on the first attempt. In addition, graduates typically need to pay for state licensure applications, background checks, and fingerprinting.

Here’s what you can expect to pay before you can start practicing:

•   NCLEX-RN registration fee: $200

•   NCLEX prep: Prep books run $30 – $100; online review courses are $100 – $500; live prep classes range from $300 to $1,000

•   State licensing fees: $50 – $350+ depending on the state

•   Live scan fingerprinting: $50 – $80

•   FBI Criminal Background Check: $20 – $50

How to Pay for Nursing School

Paying for nursing school can feel overwhelming, but there are many options to help manage costs, including federal and private student loans, scholarships, grants, and graduate student loans.

Federal Student Loans

Federal student loans are a common funding option for nursing students. Undergraduate students may qualify for:

•   Direct Subsidized Loans: Offered to students with financial need, the government pays interest while you’re in school and for six months after graduation.

•   Direct Unsubsidized Loans: These are not based on financial need and are available to most undergraduate students.

Graduate nursing students are eligible for only Direct Unsubsidized Loans.

You can apply for federal aid — including federal student loans, scholarships, grants, and work-study — by completing the Free Application for Federal Student Aid (FAFSA®) every year.

When it comes to paying federal loans back, many nurses choose to work for qualifying nonprofit or government organizations to take advantage of the federal Public Service Loan Forgiveness program, typically pairing it with an income-based repayment plan.

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

Scholarships and Grants

Scholarships and grants for nurses provide valuable financial assistance to help cover the cost of education without the need for repayment. Many programs are available for nursing students at all levels, including undergraduate and advanced degrees.

Scholarships are often merit-based, while grants are typically need-based. Organizations such as the American Association of Colleges of Nursing and local health care providers offer funding opportunities. These resources reduce financial burdens, making a nursing career more accessible and affordable.

Recommended: College Scholarship Finder

Private Student Loans

Private student loans can help cover remaining costs when federal aid and scholarships are not enough. These loans are offered by banks, credit unions, and online lenders.

Private loans allow borrowers to cover up to the total cost of attendance (minus other aid), offering higher borrowing limits than federal loans, which have annual and aggregate caps. However, rates are set by individual lenders and depend on the credit profile of the borrower (or their parent cosigner). A higher score increases the likelihood of receiving the lowest available rate. Private student loans also lack federal borrower protections, such as income-driven repayment and forgiveness programs.

Recommended: Student Loan Payment Calculator

Work-Study Programs and Employer Tuition Assistance

Some nursing students qualify for the Federal Work-Study program, which provides part-time employment to help cover education expenses. These jobs are often located on campus or within health care settings.

In addition, many hospitals and health care systems offer tuition assistance or reimbursement programs for employees pursuing nursing degrees. These benefits may require a work commitment after graduation but can significantly reduce out-of-pocket costs.

Financial Aid Options Specific to Nursing Students

Beyond traditional financial aid, nursing students may qualify for specialized programs designed to address health care workforce shortages.

Nurse Corps Loan Repayment Program

The Nurse Corps Loan Repayment Program is a U.S. federal program that helps registered nurses and advanced practice nurses repay a significant portion of their student loans in exchange for a work commitment. Participants are required to work for at least two years at an eligible health care facility with a critical shortage of nurses or at an eligible nursing school as nurse faculty.

State-Based Forgiveness Programs

Many states offer loan repayment or forgiveness programs for nurses who work in designated shortage areas or high-need specialties. Program requirements and benefits vary by state, but they often provide substantial financial relief.

It’s worth researching options in your state or the state where you plan to practice to determine eligibility and application timelines.

The Takeaway

The cost of nursing school varies based on the degree level you pursue and the institution you choose. While an ADN offers a lower-cost entry into nursing, advanced degrees like MSN or DNP require a greater financial investment but can lead to higher salaries and expanded career opportunities.

By understanding tuition costs, planning for additional fees, and exploring all available aid options, you can make an informed decision that balances education costs with future earning potential. With careful planning, nursing school can be a worthwhile investment in a stable and in-demand career.

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

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

FAQ

How much is nursing school for four years?

The cost of a four-year Bachelor of Science in Nursing (BSN) degree varies significantly by institution. If you attend a public school as an in-state student, the total cost typically ranges from $108,000 to $176,000, including annual tuition, fees, and room and board. If you attend a private institution, the total cost is generally higher, ranging from $172,000 to $304,000.

Is nursing school worth it financially?

Yes, nursing school is generally considered a worthwhile financial investment. Registered nurses can earn a solid median salary, often with strong job security and benefits. While tuition and time costs can be significant, especially for BSN, MSN, or DNP degrees, many nurses recoup their investment within a few years of working. Opportunities for overtime, specialization and advanced practice roles can further increase earning potential over time, making nursing a financially sustainable and flexible career choice.

What is the average debt after nursing school?

The median student loan debt for graduates with a Bachelor of Science in Nursing (BSN) is $23,506.

What financial aid is available specifically for nursing students?

Nursing students can access federal student loans (Direct Subsidized and Unsubsidized), private student loans, and various scholarships and grants specifically for nursing. Specialized options include the federal Nurse Corps Loan Repayment Program, which offers loan forgiveness for nurses who commit to working in critical shortage facilities, and various state-based forgiveness programs that incentivize practice in high-need areas.

How do nursing salaries compare to the cost of education?

Nursing salaries generally compare favorably to the cost of education, especially over the long term. While tuition for nursing programs can be significant, particularly for bachelor’s or advanced degrees, nurses often earn stable, competitive salaries with strong job security. Many graduates recoup their education costs within a few years of working. Financial aid, scholarships, and employer tuition reimbursement can further reduce upfront expenses, improve the overall return on investment for a nursing education.

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

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

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

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

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Deciding whether to go to college is a major life choice with long-lasting consequences — financially, socially, and personally. For decades, a college degree has been seen as a clear pathway to better jobs and higher earnings. But rising costs, record levels of student debt, and changing workforce demands have made this choice more complex.

Below we break down the advantages and disadvantages of going to college, examine how earning potential varies by major, and explore alternative options. Understanding both sides of the equation can help you and your family make a more informed and intentional decision.

On the Fence About Going to College?

If you’re unsure whether college is worth it, you’re not alone. Surveys of college graduates show growing skepticism about the return on investment (ROI) of a four-year degree, particularly among younger workers.

In a March 2025 Harris/Indeed poll of graduates who were working or looking for work, roughly half of Gen Z respondents said they were skeptical about the value of their degree. Similarly, an August 2025 Gallup poll found that just 35% of American adults viewed college as very important, down from 70% in 2013.

Many students today weigh concerns about debt, job prospects, and the time commitment against potential long-term benefits such as higher income, career flexibility, and personal growth.

💡 Quick Tip: SoFi offers competitive fixed- or variable-interest rates. So you can get a private student loan that fits your budget.

Pros of Going to College

Going to college offers numerous benefits, from personal development to expanded career opportunities. Here’s a look at some key advantages.

Higher Earning Potential

Higher education does not guarantee wealth, but statistically, it increases access to higher-paying roles and long-term earning growth, particularly in professional and technical fields.

Data from the Bureau of Labor Statistics (BLS) show that, on average, workers with bachelor’s degrees earn 66% more per week than those with only a high school diploma. Additional education can widen this gap further: Individuals with professional degrees make, on average, 53% more than those with bachelor’s degrees.

Access to More Jobs

Many occupations list a bachelor’s degree as a minimum requirement, even when the daily tasks may not strictly require one. Holding a degree allows you to qualify for a broader range of roles and provides greater flexibility when choosing where you want to work.

According to a Georgetown University report, by 2031, 72% of all U.S. jobs are expected to require some form of postsecondary education or training. Roughly 42% of jobs will require at least a bachelor’s degree, while about 28% will be available to workers with a high school diploma or less.

Value of Learning

College provides more than job-specific training. Students develop transferable skills such as critical thinking, analytical reasoning, written and verbal communication, collaboration, and adaptability. These skills are valuable across industries and remain relevant even for those entering technical fields.

In an economy shaped by automation and rapid technological change, the ability to learn, analyze, and adapt may be just as important as specialized knowledge.

Networking

Going to college offers built-in networking environments that are difficult to replicate elsewhere. Students interact with professors, advisors, classmates, alumni, and visiting professionals. Internships, research projects, student organizations, and career fairs provide early exposure to industries and employers.

The connections you form in college can play a significant role in securing your first job after graduation and advancing throughout your career, especially in competitive fields where referrals and recommendations matter.

Lower Unemployment

BLS data consistently show that unemployment rates decline as education levels rise. For workers aged 25 and over, those with less than a high school diploma typically face the highest unemployment rates, while those with advanced degrees experience the lowest.

While no credential guarantees job security, higher education can provide insulation during economic downturns and improve reemployment prospects.

Lower Poverty

Educational attainment is strongly correlated with lower poverty levels. According to the U.S. Census, roughly 4% of Americans with a bachelor’s degree or higher were living below the poverty line in 2025, compared with approximately 23% of those without a high school diploma.

Higher earnings, steadier employment, and access to employer-provided benefits all contribute to this outcome.

Recommended: Colleges With Free Tuition

Healthier

Numerous studies show that people with higher education levels report better overall health. College graduates are more likely to have employer-sponsored health insurance, engage in preventative care, and maintain healthier lifestyles.

Education is also associated with improved mental health outcomes, partially due to increased financial stability and access to resources.

Better Educated Children

Parents with college degrees are generally more likely to emphasize academic achievement and educational attainment for their children. This can create long-term benefits across generations, including higher graduation rates and greater economic mobility.

More Likely to Save for Retirement

College graduates are more likely to work in jobs that offer retirement plans such as 401(k)s. Higher earnings also make it easier to contribute consistently to long-term savings, which can help improve financial security later in life. An April 2025 Gallup poll found that 81% of college graduates had retirement savings, compared with 39% of adults without any college education

Increased Job Stability and Benefits

Beyond wages, college degree holders are more likely to receive benefits such as paid leave, health insurance, disability coverage, and employer retirement contributions. These benefits can significantly influence quality of life and long-term financial security, even when base salaries appear similar.

Cons of Going to College

Despite its advantages, college also involves real costs and risks. Here’s a look at some of the drawbacks of going to college.

Cost of College

The rising price of higher education is one of the most substantial barriers for students today.

Cost of Tuition

According to the College Board’s 2025-26 “Trends in College Pricing” report, the average published tuition and fees for full-time students are $11,950 at public four-year in-state institutions and $45,000 at private nonprofit four-year universities. When housing, food, books, and other expenses are included, the total annual cost of attendance averages $30,990 for in-state students at public schools and $65,470 for private colleges.

Opportunity Cost of Time Spent Not Working

College requires a substantial time commitment. Full-time students typically delay full-time employment for four years or more. During that period, noncollege peers may be earning income, gaining work experience, and advancing in their careers.

For individuals confident in alternative career paths, this opportunity cost can be substantial.

High-Paying No-Degree Jobs

Not all high-paying careers require a bachelor’s degree. Skilled trades, certain technology roles, and some health care positions often rely on certifications, apprenticeships, or associate degrees instead.

Examples of relatively high-paying jobs that may not require a college degree include:

•   Wind turbine technician

•   Electrician

•   Flight attendant

•   Hearing aid specialist

•   Plumber

•   Licensed practical nurse

•   Medical records technician

•   Construction worker

These paths often involve lower training costs and faster entry into the workforce.

Underemployed College Graduates

Some graduates struggle to find work that fully utilizes their degree, leading to underemployment. Underemployment refers to recent graduates working in roles that don’t typically require a bachelor’s degree.

Research suggests that as many as 52% of college graduates are underemployed when they first enter the labor market. This can reduce the financial return on a college investment and contribute to dissatisfaction, particularly among those carrying student debt.

Recommended: Student Loan Payment Calculator

Dropping Out

Not all students complete their degrees. National data shows that a substantial share of students who start college do not finish within eight years. For these individuals, the financial and time investment may not deliver the expected return, while student debt often remains.

Student Loan Debt and Long-Term Financial Impact

Student loan debt remains a major concern for many borrowers. According to the Education Data Initiative, the average student borrows more than $30,000 to earn a bachelor’s degree. Professional degrees can raise debt levels considerably: Average law school debt is around $140,000, while average medical school debt approaches $200,000.

While debt is manageable for some graduates, for others, it can become a long-term financial burden that affects major life decisions.

💡 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.

Earning Potential of Different Majors for College Graduates

The financial value of a degree is not uniform — outcomes vary widely depending on the chosen field of study.

STEM vs Humanities and Liberal Arts

An October 2025 Georgetown University report found that while a bachelor’s degree generally increases income, your major plays a critical role in determining earning potential. STEM graduates earned the highest median salaries at approximately $98,000, while graduates in arts and humanities majors earned a median salary of about $69,000.

ROI by Field of Study

Return on investment depends on both post-graduate earnings and the cost of education. A September 2024 Bankrate analysis of U.S. Census data found that degrees in engineering, nursing, and technology tend to deliver the strongest financial returns, while bachelor’s degrees in the arts and humanities often take longer to break even due to lower average pay and high tuition costs.

Understanding expected earnings by major is important when evaluating whether college makes financial sense.

Is College Right for You?

If you’re debating whether college is worth it, the following considerations can help guide your decision.

Factors to Consider Based on Career Goals and Finances

Key questions to ask include:

•   Does your intended career require a degree?

•   What is the total cost of attendance, not just tuition?

•   How much debt would you need to take on?

•   What is the expected salary in your chosen field?

Aligning your education decisions with realistic financial projections can help prevent a costly mismatch.

The Role of Passion and Personal Interests

For some students, college is closely tied to intellectual curiosity and personal fulfillment. For others, hands-on work, entrepreneurship, or technical training may be more motivating. While passion alone shouldn’t dictate the decision, it can play a key role in persistence and long-term satisfaction.

Alternatives to College

College is not the only path to success. Several alternatives can offer practical, lower-cost routes into stable careers.

Trade School

Trade schools focus on specific skills such as electrical work, welding, HVAC, and automotive repair. Programs are typically shorter and more affordable than four-year degrees and often lead directly to in-demand jobs.

Community College

Community colleges offer associate degrees and certificates at significantly lower cost than four-year institutions. Many students use them as stepping stones to bachelor’s programs or as direct pathways into technical and health care roles.

They tend to offer flexible schedules, making it easier for students to work or care for family members. About 40% of all undergraduate students in the U.S. are enrolled in community colleges, according to a December 2025 report from Columbia University’s Community College Research Center.

Industry-Specific Education Programs

Bootcamps and short-term training programs in fields like IT, cybersecurity, data analytics, and digital marketing can provide job-ready skills in three to six months rather than years.

Learning on the Job

Some careers prioritize experience over formal credentials. Entry-level roles, internships, and freelance work allow individuals to build skills while earning income, particularly in creative and technical fields. This approach can provide a debt-free alternative to college.

Apprenticeships and Certifications

Apprenticeships combine paid work with structured on-the-job training and classroom instruction. These programs often lead to industry-recognized certifications that validate specific skills and expertise.

Apprenticeships are available in a variety of fields, including manufacturing, construction, IT, health care, energy, transportation, and logistics.

The Takeaway

Going to college can be a powerful investment — but only when it aligns with clear goals, realistic finances, and thoughtful planning. For many careers, higher education opens doors to stability, higher earnings, and long-term benefits. For others, alternative paths may offer faster and more affordable routes to success.

Ultimately, the most important question is not whether college is worth it in general, but whether it’s worth it for you.

When it comes to paying for college, students may rely on a combination of 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 are the biggest reasons for not going to college?

The biggest reasons for not going to college often center on the high cost, which can lead to significant student loan debt and long-term financial burden. Other factors include the opportunity cost of time spent not working, the risk of dropping out without a degree, and the possibility of underemployment (working in a job that doesn’t require a degree). Some individuals find that career-focused alternatives, like trade schools or apprenticeships, offer a faster, more affordable path to a stable, well-paying job.

What are the most important reasons to attend college?

The most important reasons to go to college include:

•   Higher earning potential: College graduates statistically earn significantly more than those with only a high school diploma.

•   Access to more jobs: A degree is often a minimum requirement for professional and technical occupations, offering greater career flexibility.

•   Skill development: College helps develop valuable transferable skills like critical thinking, communication, and adaptability.

•   Lower unemployment: Degree holders consistently have lower rates of unemployment and poverty.

•   Networking: College provides connections with alumni, professors, and professionals that can be important for career advancement.

How does college compare to trade school as far as cost and benefit go?

College typically involves significantly higher costs and takes longer (four years or more), often leading to more student debt. However, a bachelor’s degree statistically offers the highest lifetime earning potential and the greatest flexibility in career path.

Trade schools are generally less expensive, require less time (often six months to two years), and provide faster entry into high-demand, skilled trades. While trade school pay may be lower than a top college degree, the lower cost and time commitment may result in a faster return on investment.

Can you succeed financially without going to college?

Yes, absolutely. Financial success does not strictly require a four-year college degree. Many paths lead to high earnings and stability without traditional college, including trade schools, apprenticeships, industry-specific certifications (like those in IT or tech), and entrepreneurial ventures. These alternatives often involve lower debt and faster entry into the workforce.

What are good alternatives to a traditional four-year degree?

Top alternatives to a traditional four-year degree include:

•   Trade school: Focuses on specific skills and offers faster, more affordable training for in-demand jobs like plumbing, electrical work, and automotive technology.

•   Community college: Provides lower-cost associate degrees and certificates, often serving as a stepping stone to a bachelor’s or a direct path to technical roles.

•   Apprenticeships/certifications: Combines paid work with structured training, leading to industry-recognized credentials in fields like IT, health care, and construction.

•   Industry-specific education programs: Short-term bootcamps in tech fields (such as coding or data analytics) for rapid skill acquisition.

•   Learning on the job: Building experience and skills through entry-level roles or internships.

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

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

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

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

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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Student loans can be confusing, especially when it comes to how and when the money is actually released. Many borrowers expect funds to arrive all at once or directly in their bank account, only to discover the process works differently than anticipated.

Generally speaking, both federal and private student loans are disbursed directly to the school to pay for things like tuition, fees, and room and board. Keep reading to learn more on the disbursement timeline, who receives the funds first, and what happens to any remaining money after school charges are paid.

The Lowdown on Student Loans

Student loans are designed to help college students absorb the many costs of postsecondary education.

The average price of tuition for the 2025-26 school year is $11,950 for an in-state undergraduate student at a public college and $45,000 for a private college student, according to the College Board.

Because of this cost, many students rely on student loans to help pay for college. Student loans typically cover up to the cost of attendance, which may include:

•   Tuition and fees

•   Housing

•   Meals

•   Transportation

•   Books and supplies

•   Computers

A rule of thumb suggests that only required materials and needs can be paid for with a loan. When in doubt about whether an item can be purchased with student loan funding or not, it’s best to speak directly to the loan provider or college financial aid department.

And remember, student loan money is borrowed money and will have to be repaid, with interest.

Recommended: Are Student Loans Secured or Unsecured?

Types of Student Loans: Federal and Private

The two main types of student loans are federal student loans and private student loans. Federal loans are provided by the U.S. government, while private loans are issued by financial institutions. Federal student loans include Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans.

Direct Subsidized Federal Loan

A Direct Subsidized Loan is a federal student loan available to undergraduate students who demonstrate financial need. The U.S. Department of Education pays the interest while you’re enrolled at least half-time, during the grace period, and during approved deferment periods, helping keep overall borrowing costs lower.

Direct Unsubsidized Federal Loan

A Direct Unsubsidized Loan is a federal student loan available to undergraduate, graduate, and professional students, regardless of financial need. Interest begins accruing as soon as the loan is disbursed, including while you’re in school, during the grace period, and during deferment or forbearance.

Direct PLUS Loan

A Direct PLUS Loan is a federal student loan available to graduate or professional students and to parents of dependent undergraduate students. It requires a credit check, has higher interest rates than other federal loans, and interest begins accruing as soon as the loan is disbursed.

Under Trump’s One Big Beautiful Bill, no new Federal Direct PLUS Loans for graduate students will originate after July 1, 2026. Current borrowers who received a Grad PLUS loan before June 30, 2026 can continue borrowing under current terms through the 2028-29 academic year.

Direct Consolidated Loan

A Direct Consolidation Loan is a federal loan that combines multiple eligible federal student loans into a single loan with one monthly payment. It can simplify repayment and may extend the repayment term, but it does not lower the interest rate, which is a weighted average of the consolidated loans.

Recommended: Consolidate vs. Refinance Student Loans

Private Student Loan

Private student loans are education loans offered by banks, credit unions, and online lenders rather than the federal government. They can be used to cover gaps in college costs after scholarships, grants, and federal aid are applied. Interest rates may be fixed or variable and are based on the borrower’s credit history, income, and overall financial profile, often requiring a creditworthy cosigner for students.

Unlike federal student loans, private student loans do not offer standardized repayment plans or borrower protections set by law. Terms vary by lender and may include fewer options for deferment, forbearance, or loan forgiveness. Because of these differences, borrowers should carefully compare rates, fees, repayment terms, and flexibility before choosing a private loan.

Recommended: Private Student Loans vs Federal Student Loans

How Long Does It Take to Get Student Loans Disbursed?

Disbursement is a term that describes when a loan is actually paid out. Disbursement timelines may vary depending on whether the loan is a federal or private student loan.

Federal Student Loan Disbursement

To get a federal student loan, interested students must fill out the Free Application for Federal Student Aid, otherwise known as the FAFSA®. Information provided on this form will be used to determine how much federal financial aid and what types a student will qualify for — including federal student loans.

Applications are typically reviewed within three days to three weeks of submission. Federal student loans are generally disbursed directly to the school at the start of each semester. Each school determines when they will pay out any leftover aid to use for additional living and educational expenses.

Private Student Loan Disbursement

The application for a private student loan will be conducted with the individual lender. Each lender will have its own policies for applications and approvals. Generally speaking, it may take between two and 10 weeks to process a private student loan.

Private student loans are also generally disbursed directly to your school. The disbursement date may be timed to the start of the school year, though, this may vary depending on when you apply for and are approved for a private student loan.

Recommended: A Complete Guide to Private Student Loans

How Are Student Loans Disbursed?

Whether a student chooses to accept multiple federal loans, a private loan, or a combination of the two, the money is often distributed the same way. As briefly mentioned, the loan amount is sent directly to the attending school, where it is held in the student’s account before being applied to covered costs, including tuition, fees, and room and board.

When there is leftover money in a student’s account, the excess is paid directly to the student to be used for additional expenses. These payouts tend to take place once per term and vary by school. If students receive leftover funding, they can use it as they see fit or even begin to pay back the loan early.

Keep in mind that all universities have their own policies on loans and disbursement. Questions about how a specific school handles student loans should be directed to the financial aid office.

Overage funds tend to be awarded to the holder of the loan. If a student’s parents hold a loan with overage, they’re more likely to receive the leftover money.

Also, disbursements may be held for 30 days after the first day of enrollment, especially if the student is a freshman and first-time borrower, according to the Federal Student Aid office.

What Happens if Your Disbursement Is Delayed?

If your student loan disbursement is delayed, it can affect your ability to pay tuition, fees, housing, or other education expenses on time. Schools may place temporary holds on your account or assess late fees until funds arrive. In the meantime, you may need to contact your financial aid office, request a short-term payment extension, or use alternative funds while the issue is resolved.

Common Student Loan Disbursement Issues

It’s possible for issues to crop up that could impact your disbursement. These include:

•   Missing application deadlines. Applying for a private student loan or filing the FAFSA too late could impact when your student loan is disbursed. To avoid any late disbursements, be sure to submit your FAFSA before state or school-specific deadlines.

•   Making mistakes on the application. If there are errors on the FAFSA or a private student loan application, this could impact your approval or potentially delay the disbursement date as you fix errors and resubmit the application.

•   Forgetting to complete entrance counseling for federal student loans. You must complete the entrance counseling required for federal student loans before they are disbursed. Be sure to read the terms of all loans closely and fill out all paperwork properly to ensure timely disbursement.

How to Track the Status of Your Student Loan Disbursement

You can track the status of your student loan disbursement by regularly checking your school’s student portal and your lender or loan servicer’s online account. These platforms typically show when funds are scheduled, processed, and applied to your balance. If information is unclear or delayed, contacting your financial aid office can help clarify timelines and resolve issues.

Final Tips

The world of student loans can be intimidating at first, but it’s not impossible to learn how to navigate the financial waters of postsecondary education. These final tips may help:

•   Compare all options. It’s better to have too many loan options and turn some down than face uncertainty about how to pay for everything.

•   Apply early. This ensures there’s time to make corrections if necessary. There are rules and requirements unique to all types of loans.

•   Avoid overborrowing. Try to calculate overall expenses and keep loan amounts as close as possible to the estimate. Being approved for a large loan doesn’t mean the total amount has to be accepted.

•   Get a part-time job. A part-time job may help to alleviate the stress that loan payments can add.

The Takeaway

Student loan disbursement is a critical step in the borrowing process, as it determines when and how your loan funds are delivered to cover education costs. Understanding the timing, method, and potential delays of disbursement can help you plan ahead, avoid surprises, and manage your finances more confidently throughout the school year.

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

Do student loans get deposited into your bank account?

Typically, student loans do not get deposited in your bank account. Instead, the loans are disbursed directly to the school, where they are applied to tuition payments and room and board. If there is any money leftover after paying for tuition, the money will then be distributed to the student. These payouts tend to take place once per term and vary by school.

How long do student loans take to deposit?

After applying through the FAFSA, it may take up to 10 days to find out what types of aid — including student loans — you are eligible for. If approved for a federal student loan, this money will be disbursed directly to the school. Typically, this will happen within the first 30 days of the start of term.

What does disbursement mean?

Disbursement is when the loan amount is paid out to the borrower. In the case of student loans, the loan is typically disbursed directly to the student borrower’s school.

Can you use a student loan to pay a tuition bill that is past due?

Yes, you can use a private student loan to pay off an outstanding tuition balance. Each lender determines how far in the past a loan can be used to pay an overdue balance, but many will allow loans to cover past-due balances that are six to 12 months outstanding.

Can I use leftover student loan money for personal expenses?

Yes, leftover student loan funds can be used for approved education-related expenses, such as housing, food, transportation, books, and supplies. However, they should not be used for nonessential or luxury purchases. Using excess funds responsibly can help cover living costs while minimizing unnecessary debt.

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

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

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

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

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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