Student Loans Archives

Jan

2026

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Student Loan Debt and Divorce: Does It Get Split?

By Sarah Brooks | Family Finances, Life & Career, Student Loans, student_loan | No Comments

Table of Contents

Addressing Separate Student Loans
Approaching Refinanced Loans
Paying Your Part
How Divorce Settlements Can Affect Student Loan Repayment
FAQ

Divorce is probably not the first word that comes to mind when you think about repaying your student loans.

But for married couples who are splitting up, debt — and who’s responsible for it — can be a very real factor in a divorce settlement. So how does student loan debt get split in divorce?

There isn’t one right answer to this question — it depends on countless factors, often including what state you live in, and when you took out the loan.

But first, we want to be clear that nothing in this article should be taken as financial or legal advice. This broad overview of student loan debt responsibility after divorce doesn’t take your unique circumstances into consideration, which is why we recommend discussing the specific details with a financial advisor or attorney.

That said, let’s look at divorce and student loan debt and what the impact might be in various circumstances.

Key Points

• Divorce may complicate the division of student loan debt, influenced by state laws.

• Loans taken before marriage typically remain the sole responsibility of the borrower.

• Post-marriage loans may be considered marital property and split 50-50 in community property states.

• In equitable distribution states, debt is divided based on fairness and what’s equitable, with courts considering factors like income.

• If a spouse is a cosigner on a partner’s refinanced student loan, they are equally responsible for the loan.

Addressing Separate Student Loans

When it comes to student loans, divorce can make things tricky. Whether student loan debt gets split in a divorce depends on a number of factors, including who owns the loans and the state in which you live.

Determining Ownership Based on State Law

In a divorce, assets and debts are typically divided in part based on whether or not they are considered to be marital property, which can vary by state. You are typically responsible for loans taken out in your name before you were married, and likewise for your ex-spouse.

Debt in a divorce can get a little bit more complicated if you or your spouse took out a student loan after marriage. These loans may be considered marital property, depending on the laws in your state and the circumstances under which you took out the loans.

Community Property vs Equitable Distribution

When addressing marital property, states typically use either community property laws, in which property or debt taken on during a marriage is jointly owned (known as communal debt), or equitable distribution laws, where the property or debt belongs solely to the spouse who initiated the purchase or debt. In states with community property laws, marital assets and debts are split 50-50 between spouses.

Most states have equitable distribution laws, which can make dividing assets or debt a little more confusing. In these states, each spouse has a claim to an equitable share of marital property, which may or may not be divided equally.

Courts have final say over what’s fair and equitable. To determine that, they may look at each spouse’s income, earning potential, or the support one spouse provided while the other was in school, such as child care or even the opportunity costs of putting their own education on hold. Furthermore, if you or your spouse took out student loans to pay for an education that benefited you both, that could also be a consideration in court.

Recommended: Student Loan Debt Guide

Approaching Refinanced Loans

If you or your spouse have refinanced student loans, whose names the loans are in and whether one of you cosigned the other’s loan can determine who is responsible for the debt and how it may be separated in divorce.

Joint Refinancing and Liability After Divorce

Some couples may have combined their separate student loans into one big joint refinanced loan while they were married, though not all lenders allow this.

If you and your spouse have a joint refinanced loan, state law will typically dictate how it’s handled. In equitable distribution states, how the debt is divided by the courts may depend on your financial circumstances. In community property states, the courts decide whether the loan is communal debt and then split the debt evenly

Even if a couple did not refinance their loans jointly, they may have refinanced one partner’s loans with the other serving as the cosigner. For example, if one member of a couple wanted to refinance their loans but didn’t qualify, their spouse may have decided to cosign the refinanced loan in order to help them qualify for or secure a better rate.

When couples cosign on their partner’s loans, both spouses are on the hook for the debt. While this may work while a couple is together, it can make things complicated when your ex-spouse is the cosigner of your refinanced loan. This new loan is owned by the couple, and may be considered marital property subject to community property laws or equitable distribution laws.

Finally, if you have joint student loan consolidation of federal loans — a program that was discontinued by the Education Department in 2006 — there is a way to separate your joint loan obligation and reconsolidate into new individual Direct Consolidation Loans. You can learn more about the process from the Federal Student Aid office.

Steps to Separate Refinanced Loan Responsibility

To deal with divorce and student loan debt in the case of a loan that’s been refinanced, you can separate the responsibility for repaying the loan by refinancing the loan in the name of the spouse that is keeping the debt. If the debt is being split between both spouses, it may be possible for each spouse to separately refinance their share of the debt, but each will have to qualify with good credit and income, which can be difficult to get approval for. Not many lenders offer this option.

You may want to speak to an attorney in your state to help figure out the best way to proceed for your specific situation.

Paying Your Part

In cases where debt is considered marital property, divorcing couples on good terms can decide how to divide student loan debt and have a court sign off on it. However, in some cases, ex-spouses may simply not be able to take charge of dividing things up, and the court can decide how the debt will be divided instead.

At this point, you’re losing the power of a combined income to pay off your loans, so you may need to consider strategies to help the newly-single you afford your payments.

Refinance Your Student Loans

First, you may want to consider the option to refinance student loans to potentially secure a better rate or term. A better interest rate and shorter term might help you pay down your debt faster and could reduce the money you spend on interest over the life of the loan.

You can shop around for student loan refinancing rates to find the best rates and terms for your situation.

If you lengthen the term of your loan, you may be able to lower your monthly payments, which can help if your budget is strapped. However, longer terms typically mean you’ll end up paying more over the life of the loan.

Using our student loan refinancing calculator could help you see how much you might save.

Keep in mind that if you choose to refinance federal student loans with a private lender, you lose access to federal benefits, including income-driven repayment plans (discussed below) and student loan forgiveness.

Recommended: The Impact of Student Loan Debt

Use an Income-Driven Repayment Plan

Federal loans currently have income-driven repayment (IDR) options that can also help you lower your monthly payments. These income-driven repayment plans have you pay a percentage of your discretionary income, generally 10% to 20%, toward your student loans each month. And if you pay your loans off on one of the IDR plans, your remaining balance may be forgiven (though that forgiven balance will be taxed as income).

Remove Your Student Loan Cosigner, if Applicable

If you refinanced your student loans when you were married and your spouse was your cosigner, you could also consider refinancing a second time — as an individual. This could allow you to not only qualify for new loan terms or rates, but also ensure that your ex’s name is no longer tied to your student debt. You can calculate your student loan payments to help determine what you might pay with a new interest rate and/or term.

Communicate Changes to Your Loan Servicer

Once you’ve chosen a plan of action, it’s important to reach out to your loan servicer to let them know how you will be proceeding, so that they can update your account accordingly. There may be paperwork you’ll need to complete as well; be sure to find out what’s required.

How Divorce Settlements Can Affect Student Loan Repayment

The way your student loan debt is divided in divorce, and whether you live in a community property or equitable distribution state, determines how you or your ex — or both of you — can move forward with repaying the debt.

Including Student Loans in Divorce Agreements

Your divorce agreement or divorce degree should stipulate exactly who is responsible for repaying the student loan(s), as well as the plan for how it will be repaid.

Legal Support for Resolving Loan Disputes

If you and your soon-to-be ex can’t agree on how your student loan debt should be handled, you can get help from lawyers in your state that specialize in family law and the division of debt. Generally speaking, these legal professionals help negotiate settlements in a divorce and represent individuals in court. You may also want to consult an attorney who specializes in student loans, depending on your unique situation.

If you need help finding a lawyer, the American Bar Association has a lawyer referral directory you can consult, and LawHelp.org offers low-cost legal assistance for eligible individuals.

The Takeaway

Going through a divorce is difficult enough — figuring out who is responsible for student loan debt as you and your ex go your separate ways can make it even tougher. The state you live in and when the loans were taken out can help determine who owes what.

Repaying your student loans on a single income after divorce might call for ways to make it more affordable, such as using an income-driven payment plan or refinancing the loans. Explore the different options to decide what works best for your financial situation.

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

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

FAQ

Am I responsible for my spouse’s student loan debt if we divorce?

A spouse is typically liable for student loans taken out in their name before marriage. But if the loans were taken out after you were married, they might be considered marital property, depending on the laws in your state. If your state is a community property state, the student loans would generally be treated as jointly owned. If you live in an equitable distribution state, marital debt is divided by the courts based upon what they deem fair and equitable.

Does my spouse take on my student loan debt?

Your spouse does not typically take on your student loan debt for loans you borrowed before you were married. However, if you took out student loans after your marriage, your spouse might also be responsible for that debt.

What happens if I marry someone with a lot of student loan debt?

If you marry someone with a lot of student loan debt, the debt remains theirs alone, unless they refinance the loans with you as a cosigner. In that case, you are equally responsible for the debt. Your spouse’s student loan debt could also potentially impact your approval for any loans you apply for together, such as a mortgage, since the loan debt would be included in your debt-to-income ratio, which lenders use to help evaluate a borrower’s ability to repay a loan.

Can student loans be split in a divorce settlement?

Yes, student loans can be split in a divorce settlement, but whether and how it happens generally depends on the state you live in and when the loan was taken out. Loans borrowed before marriage are generally considered the responsibility of the individual who took them out.

If the loans were taken out after marriage and your state uses community property laws, the debt is jointly owned and split 50-50 in divorce. In states with equitable distribution laws, the debt is divided in a way a judge deems fair and equitable.

How do courts handle student debt in community property states?

In the nine community property states in the U.S., student debt taken out during a marriage is considered jointly owned, and it is divided equally between both spouses — even if the loan is in just one spouse’s name. If the loan was taken out before the marriage, the debt is generally considered the responsibility of the person who borrowed the money.

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

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

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

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

This article is not intended to be legal advice. Please consult an attorney for advice.

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

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

SOSLR-Q126-003

Jan

2026

A smiling woman sits at her dining room table typing on a laptop with a cell phone and notebooks beside her.

Is There a Prepayment Penalty on Student Loans?

By Melissa Brock | Fresh Out of School, Student Loans, student_loan | Comments Off

Table of Contents

What Is a Prepayment Penalty?
Student Loan Prepayment Penalties
Prepaying Federal Student Loans
Prepaying Private Student Loans
Benefits of Prepaying Student Loans
Strategies for Effective Student Loan Prepayment
FAQ

Prepaying student loans can help you save on interest and become debt-free faster. Many loans, including federal and private student loans, allow prepayment without penalties, but it’s essential to understand how to make extra payments effectively.

Whether you want to pay down principal directly, make biweekly payments, or prioritize high-interest loans, prepayment strategies can significantly impact your financial future. This guide explores the benefits of prepaying student loans and how to ensure that your extra payments are applied correctly.

Key Points

• Federal and private student loans in the U.S. allow prepayment without penalties, enabling borrowers to pay off their debt faster and save on interest.

• Ensure that any additional payments are applied directly to the loan principal by specifying this with the loan servicer, reducing overall interest.

• Prioritize extra payments toward loans with the highest interest rates to maximize savings over time.

• Check accounts regularly and review monthly loan statements to make sure prepayments are being applied correctly.

• Another way to potentially save money on student loans is by refinancing them, ideally with a lower interest rate. However, refinancing federal student loans makes them ineligible for federal benefits and protections.

What Is a Prepayment Penalty?

A prepayment is any extra amount you pay on your loans in addition to your regular required monthly payment. A prepayment penalty refers to fees you pay to your lender if you choose to make extra payments.

Generally, if you have private or federal student loans, you will not pay penalties if you prepay your student loans. In fact, lenders are banned from charging additional fees when you make extra payments.

If you’re planning (or hoping!) to pay off your loan in full, check with your loan servicer about the details and to get a payoff quote. A payoff quote is an estimate of how much you’ll need to pay in order to pay off the full loan amount.

Student Loan Prepayment Penalties

Borrowers who want to make prepayments may worry that there is a prepayment penalty on student loans. There isn’t — but here’s what to know.

Are Prepayment Penalties Common with Student Loans?

There are generally no prepayment penalties on student loans. Lenders are prohibited from charging prepayment penalties on federal or private student loans. The Higher Education Act of 1965 banned prepayment penalties for federal student loans. And in 2008, the Higher Education Opportunity Act (HEOA) amended the Truth in Lending Act (TILA), banning prepayment penalties for private student loans.

Why Lenders Might Discourage Early Repayment

Although they cannot charge prepayment penalties, some lenders might prefer it if borrowers didn’t pay their loans off early. That’s because the longer it takes to repay a loan, the more time interest accrues, and the more a lender might collect.

Additionally, for federal student loan borrowers who are repaying their loans on an income-driven repayment (IDR) plan or working toward student loan forgiveness, these programs typically require paying loans over a certain period of time, such as 20 to 25 years, or making a certain number of payments, like the 120 qualified monthly payments to achieve Public Service Loan Forgiveness, which generally takes at least 10 years. If a borrower repays their loans early, they miss out on the federal benefits, and the lender misses out on the money they may have earned over a longer loan term.

Prepaying Federal Student Loans

Federal student loans are loans lent to borrowers by the federal government; specifically, the Education Department. They include:

• Direct Subsidized Loans: These loans are for eligible undergraduate students with financial need.

• Direct Unsubsidized Loans: These are for eligible undergraduate, graduate, and professional students..

• Direct PLUS Loans: These are for parents who want to borrow money for their dependent undergraduate students (Parent PLUS Loan) and for eligible graduate or professional students (Grad PLUS Loan).

• Direct Consolidation Loans: Borrowers with eligible federal student loans who want to combine them into a single loan with one interest rate can opt for student loan consolidation.

Federal student loans go into repayment when you graduate, drop below half-time enrollment, or leave school

You’ll get a six-month grace period before you must make regular payments if you have Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loans (FFEL). PLUS Loans require repayment upon disbursement unless you’re a graduate or professional student, in which case you’ll be placed on an automatic deferment while in school and for six months after graduating, leaving school, or dropping below half-time enrollment.

Once you graduate, you can choose from repayment plans that base your monthly payment on your income, or a fixed monthly payment over a set repayment period. Calculating your student loan payments can give you an estimate of how much you’ll pay on each plan.

You can prepay your student loans by making extra payments beyond your monthly payment whenever you have extra cash available. You can do that as often you like, whether you do so once a year, once a month, or biweekly. You can even prepay on your federal student loans while you’re in school or during your grace period, but note that these prepayments will not count as qualifying payments for federal loan forgiveness programs.

How to Make Sure Prepayments Are Applied Correctly

It’s important to know how your loan servicer applies prepayments so that you can make sure they are done the way you intend.

Requesting Payments Go Toward Principal

Student loan servicers usually apply your payments first toward any late fees you’ve incurred, then toward any outstanding interest (the amount your lender charges for borrowing), and last, toward your outstanding principal balance (the sum you originally borrowed).

When making prepayments, contact your loan servicer to tell them exactly where the money should go. You can instruct them to put the payment toward the principal. That way it will help reduce your loan balance, which in turn can reduce the amount of interest you’ll pay.

Also, consider making an extra payment right after you make your regular monthly payment, before interest starts accruing between one payment and the next. At that point, your lender will apply the entire prepayment amount toward principal, which again, will shrink the overall amount you owe in interest.

Finally, if you have more than one loan with that servicer, you can also direct them to put the prepayments toward the loan with the highest interest rate, which can help you save more money on interest.

Tracking Loan Servicer Activity

To be sure that the payments were applied correctly, check to make sure that the loan servicer followed your instructions. You can log into your online account with your loan servicer or lender to see your payment information. Also, review your statements each month to make sure the money is going where you want it to. If it’s not, contact your servicer.

Prepaying Private Student Loans

Like federal loans, most private student loans also allow for prepayment without penalties. Still, it’s helpful to familiarize yourself with the specifics of your particular loans.

Reviewing Loan Terms for Prepayment Clauses

Most private lenders do not charge prepayment penalties. But read through your loan agreement carefully to make sure you can make prepayments without incurring any charges or having to meet specific conditions.

Also, look for information that spells out how loan prepayments are applied and any notification processes borrowers need to follow when making prepayments. See if you could pay off the entire loan early without penalty should you choose to do so.

As you’re reading over your loan agreement, be sure to note your interest rate and term. If they are less than ideal, you may want to consider the option to refinance your student loans.

With refinancing, you replace your existing loans with a private loan with new rates and terms. Depending on the student loan refinancing rates you qualify for, you may be able to reduce the interest rate, loan term, or both.You can refinance one loan, multiple loans, private loans, or a combination of federal and private loans. Just keep in mind that by refinancing federal loans with a private lender, you lose access to federal protections and benefits like forgiveness.

A student loan refinancing calculator can help you determine how much refinancing might save you.

Communicating Directly with Lenders

Tell your lender or loan servicer how to apply the payments to your private loans. Give them specific instructions on how to allocate your extra money. Keep a close eye on your online account and read your monthly statements so you know that your prepayments are going where you want them to.

Benefits of Prepaying Student Loans

There are notable benefits to prepaying student loans, especially when it comes to saving money.

Saving on Interest Over Time

By prepaying your loans and directing the extra payment to the principal balance of the loan, you can reduce the total amount of interest you’ll pay over the life of the loan, which could save you a substantial amount of money.

Paying Off Debt Sooner

Prepaying also allows you to repay your debt faster. It reduces the interest you pay since less interest will accrue than it would have over the full term of the loan. And consider this: The sooner you pay off your loan debt, the sooner you can start directing your money toward other financial goals.

Strategies for Effective Student Loan Prepayment

There are different methods you can use to prepay your loans. One or both of the following techniques may work for you

Using Windfalls and Bonuses

If you get a bonus at work, or you score a windfall — perhaps a relative gives you a generous birthday gift, for example — put that money toward your student loan payments. Any time you come into some extra cash, direct as much of it as you can to your loans to help pay them down faster and save money on interest.

Setting Up Biweekly Payments

With biweekly payments, you make two loan payments per month instead of one, paying half your student loan bill with each payment. You can time the payments to align with when your paychecks hit your bank account to make sure you’ll have the funds on hand.

With the biweekly payment method, you’ll end up making 13 full payments on your loan over the course of a year instead of 12, which can help pay down your principal faster, reduce the total interest you’ll pay, and shorten your loan term.

The Takeaway

Prepaying your student loans generally does not involve penalties or extra fees. This means you can pay off your loans as often or as quickly as you like, ultimately saving money on interest and getting out of the debt faster.

Be sure to contact your loan servicer to tell them how you want your prepayments applied. Then check your account and your monthly statements to make sure your instructions have been followed properly. While you’re at it, review your loan agreement to make sure you’re happy with your loan terms and rates. If not, you may want to consider other repayment methods or plans.

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

FAQ

Should you prepay student loans?

If you can do it, student loan prepayment can help you pay off your student loan debt faster, and save you considerable money on total interest paid over the life of the loan. Once you get out of student loan debt, you could turn your attention (and your resources) to other financial goals, such as buying a home and saving for retirement.

What about interest charges when you prepay student loans?

When you prepay student loans, ask your loan servicer to apply the extra payments toward the loan principal. This will reduce the loan balance, which is the amount on which future interest is calculated. It can save you money over time by lowering total interest charges.

Can you target specific loans when making extra payments?

Yes. Ask your loan servicer to direct your payments to the loans you most want to pay off — such as those with the highest interest rates, for example, to help you save more money on interest. If you have both federal and private loans, you may want to direct payments to the private loans first, so you can continue to have access to the federal benefits like forgiveness and deferment that come with your federal loans.

Will prepaying impact my credit score?

Making consistent payments on your student loans, including prepayments, can help strengthen your credit by building a positive payment history, which is the biggest factor in determining your credit score.

That said, paying off your loans early can temporarily lower your credit score by reducing your length of credit history and by potentially impacting your credit mix. However the slight drop in your credit score typically doesn’t last longer than several months.

Is it better to save or prepay student loans?

There is no one right answer to this question — it depends on a borrower’s unique situation. But in general, if the interest rates on your student loans are high, you may want to prioritize prepaying them to save money on interest. However, it’s important to have an emergency savings fund in place for any unexpected expenses that pop up. If you don’t have at least three months’ worth of expenses saved for that purpose, you may want to build your emergency fund first and then work on prepaying your loans.

Photo credit: iStock/BartekSzewczyk

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

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.

SOSLR-Q126-004

Jan

2026

What Is the Average Cost of College Tuition in 2026?

By Sarah Brooks | Student Loans, student_loan | No Comments

The average cost of college tuition varies widely based on location and whether the school is public or private. The average cost of college for in-state students at a four-year institution in 2024-25 is $11,610. Students at private nonprofit four-year institutions paid over $43,000, on average.

Read on for more information about average tuition costs and other expenses facing college students.

Key Points

• Average tuition and fees for in-state students at public four-year institutions for 2024-25 are approximately $11,610 per year.

• Tuition for out-of-state students at public four-year institutions averages $30,780 annually.

• The average annual tuition and fees at private nonprofit four-year institutions are about $43,350.

• College costs continue to rise annually, with rates depending on location, institution type, and other factors.

• Ways to pay for college include cash savings, scholarships, grants, federal work-study, and federal and private student loans.

The Average Cost of College

According to the College Board’s annual “Trends in College Pricing” report, the average cost of attending a four-year college as an in-state student at a public university during the 2024-25 school year is $11,610. For an out-of-state student attending a public four-year college, the average rose to $30,780.

The average cost of attending a private four-year institution is $43,350. These averages are based on the published price at a college or university. This includes tuition, fees, and room and board.

Cost is a major factor for students deciding which school to attend. According to the annual Sallie Mae survey “How America Pays for College 2024,” 81% of parents and students eliminated a college based on cost.

Historical Average Cost of Tuition

The cost of tuition has increased dramatically over time. For the 2004-05 school year, the average cost of college tuition at a public four-year institution was $5,132 for a student receiving in-state tuition. In 20 years, tuition rose to $11,610 for the 2024-25 school year.

U.S. News reviewed tuition costs at 436 ranked National Universities, those universities included as part of the annual college rankings. According to their data, the average tuition and fees at private National Universities increased by 126% in 20 years from 2004 to 2024. During the same period, at four-year public National Universities, tuition for out-of-state students increased by 112%, and for in-state students it rose by 133%.

Average Total Cost of College

A traditional undergraduate college degree takes four years to complete, which means four years of tuition costs. According to EducationData.org, the cost of college has risen, on average, about 7.0% annually since 2000.

Year-over-year changes can fluctuate greatly, however, so it can be challenging to predict exactly how much a student will pay in tuition costs over the course of their degree. For example, the “Trends in College Pricing” report found that in-state tuition costs at public four-year institutions increased just 2.7% from the 2023-24 to the 2024-25 school year. For that same time period, tuition increased 3.9% at private nonprofit four-year institutions.

To get a rough estimate of how much college will cost in its entirety, you can take the current tuition rate and multiply it by four. Keep in mind this won’t account for any increase in the cost of tuition.

Average Additional College Expenses

Tuition generally makes up the majority of a student’s college expenses. But there are other fees and costs to factor in, including room and board, books, and other supplies. As you plan how to pay your tuition, students might also consider general living expenses.

What Is the Cost of Room and Board?

Some colleges charge “comprehensive fees,” which reflect the total for tuition, fees, and room and board. Other schools charge room and board separately from tuition and fees. The cost of room and board typically accounts for the cost of housing (i.e., a dorm room or on-campus apartment) and the meal plan.

The average cost of on-campus room and board for the 2024-25 school year is $12,917 for four-year public institutions for both in-state and out-of-state students, and $13,842 for four-year private nonprofit institutions.

The actual cost will vary depending on the type of housing you live in and the meal plan you choose. Housing can be another determining factor for students. About 73% of students attend college in their home state, and 36% live at home or with relatives to save on housing costs.

The Cost of Extra Classes

Tuition at some schools covers the cost of a certain number of credit hours. Your credit hours can vary each term depending on the classes you enroll in. If you exceed the number of credit hours covered by tuition, you may pay an additional fee.

Books and Supplies

On top of those expenses, don’t forget to budget for books and supplies. The average college student attending a public, four-year college spends $1,220 on textbooks per year.

Transportation

Transportation is another major category of expenses for college students. Will you have a car on campus? If so, plan to pay for gas, insurance, and a parking permit. How often do you plan to go home? Will a trip to visit your family require airfare?

Other Living Expenses

Then there are additional personal expenses like eating out, laundry, and your monthly cell phone bill. To get an idea of how much you’ll actually spend every month, it helps to review your current spending.

College may be the first time you’ve had to learn how to budget. Consider sitting down with your parents, an older sibling, or a trusted friend who has already navigated their first year of college to get an idea of the expenses you may encounter.

Paying for College

There are, of course, options available to help you finance your education. Whether you’re going to college for the first time or returning for further education, consider looking into the following options:

First Thing’s First: The FAFSA

A common first step for students interested in securing federal financial aid is to fill out the Free Application for Federal Student Aid (FAFSA®). As you get ready to apply, pay attention to deadlines, as they vary by school and state. After you fill out the FAFSA, you’ll receive an offer letter detailing the type of aid you qualify for. This may include scholarships and grants, work-study, and federal student loans.

Planning ahead is one way to set yourself up to successfully pay for college. If you’re not quite ready to fill out the FAFSA yet, you can use the Federal Student Aid Estimator at StudentAid.gov/Aid-Estimator/ to get an idea of how much aid you might qualify for.

Recommended: Important FAFSA Deadlines to Know

Scholarships and Grants

Scholarships and grants can be immensely helpful when it comes to paying for college, since that money doesn’t need to be repaid. In addition to filing the FAFSA, you can check to see if there are any other scholarships for which you may qualify. There are also online resources and databases that compile different scholarship opportunities.

The federal work-study program is another form of aid that can help students pay for college. If you are eligible for work-study and receive it in your financial aid award, you may still have to find your own employment at your university. Check with your school’s financial aid office to find out if your school participates and whether they will place you or if they have a work-study job board.

Of course, other jobs for college students are available, but students will have to pursue those on their own.

Recommended: Grants for College

Student Loans

Student loans offer another avenue for students to finance their college education. Unlike scholarships and grants, however, student loans must be repaid. There are two kinds of student loans — federal and private.

Federal Student Loans

Applying for student loans requires filling out the FAFSA. Federal loans for undergraduates can be either subsidized or unsubsidized. With a subsidized loan, borrowers won’t be responsible for paying the interest that accrues on the loan while they are actively enrolled in school at least half-time. With an unsubsidized loan, borrowers are responsible for paying the accrued interest during all periods.

Whether subsidized or unsubsidized, loan repayment generally doesn’t begin until after graduation (or a student drops below half-time) and a grace period.

Most grace periods for federal loans are six months. Interest rates on federal student loans are set by the government and are fixed for the life of the loan.

Federal loans aren’t guaranteed to cover your undergraduate or graduate school tuition costs. There are borrowing limits that restrict the amount of federal loans a student can take out each year. For example, a first year undergrad, dependent student is currently allowed to borrow $5,500 in federal loans. In some cases, private student loans may be used to fill in the gaps.

Private Student Loans

Private student loans are offered by banks, credit unions, and online lenders. Terms and conditions of a private student loan are set by the individual lender.

Private lenders will likely review a borrower’s credit history and other financial factors in order to determine what type of loan they may qualify for. If an applicant is applying with a cosigner, private student loan lenders will look at their financial background as well, which might include things like their credit score and current income.

While federal student loans come with fixed interest rates, private student loans can have fixed or variable interest rates. Variable interest rates may start lower than fixed rates, but they rise and fall in accordance to current market rates.

Private student loans don’t carry the same benefits and protections offered by federal student loans — such as income-driven repayment and loan deferment options. Some lenders may offer their own benefits, though.

The Takeaway

The average cost of college tuition for the 2024-25 school year was $11,610 for students paying in-state tuition at a four-year public institution. For out-of-state students, the average was $30,780. At a private four year institution it was $43,350. Paying for college usually requires a combination of financing options, including savings, scholarships, grants, work-study, federal student loans, and even 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

How much does four years of college cost on average?

The average cost for four years of college varies based on the institution type. As of 2024, attending an in-state public college averages around $108,000, including tuition, fees, and living expenses. Private colleges are significantly higher, averaging over $230,000 for four years. Costs can vary further by location and program.

How much has college tuition increased in 2024?

In the 2024-2025 academic year, average tuition and fees increased by 2.7% for in-state students at public four-year institutions and by 3.9% at private nonprofit four-year institutions. These increases are below the general inflation rate of 3.1% for the same period.

What are ways to save money on college expenses?

There are many ways to save money on college expenses, including by attending in-state public colleges, starting at a community college, or enrolling in accelerated degree programs. You can apply for scholarships, grants, and work-study opportunities, use tax-advantaged 529 savings plans, minimize textbook costs through rentals or e-books, and reduce living expenses by commuting or sharing housing.

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.

SOISL-Q424-048

Jan

2026

Top No Essay Scholarships in 2026

By Ashley Kilroy | Going to College, Student Loans, student_loan | Comments Off

Applying for scholarships can be overwhelming, especially if you’re required to submit multiple forms and write in-depth essays. However, there are scholarships out there that do not require you to write any essays. Some just ask for basic info, while others might let you submit a video instead.

Keep reading to learn more about the top no-essay scholarships for 2026 and how you can apply.

Key Points

• No-essay scholarships typically require minimal effort, often needing only basic personal information, making them quick and easy to apply for.

• These scholarships are available for various education levels and fields, offering opportunities for high school, college, and graduate students.

• Many no-essay scholarships have monthly or recurring deadlines, allowing students to apply throughout the year.

• Most no-essay scholarships have broad eligibility criteria, making them accessible to a wide range of applicants.

• In addition to no-essay scholarships, students can apply for traditional scholarships and grants. Other ways to pay for college include savings, federal student loans, and private student loans.

What Are No Essay Scholarships?

As the name suggests, no-essay scholarships do not require you to write an essay. You typically just need to fill out some basic information about yourself to enter. However, some no-essay scholarships might ask for a video, photo, or other creative entry instead.

Standard scholarships usually come with more hoops to jump through. For example, some may require you to have a specific GPA, provide letters of recommendation, and/or write an essay. No-essay scholarships can give you a break from all that while providing an alternative way to receive extra money for school.

It’s important to note that since this type of scholarship is usually more straightforward to apply for, no-essay scholarships often attract more applicants. Therefore, you may have more competition for the scholarship money.

Recommended: SoFi’s Scholarship Search Finder

How Can I Increase My Chances of Winning a No Essay Scholarship?

No-essay scholarships can be an easy way to get free money for school, but it’s important not to rely on them completely. Since they’re so simple to apply for, they attract a lot of applicants, which means more competition.

To improve your chances, try applying every time a no-essay scholarship opens up, whether it’s monthly or quarterly. Some even let you submit a video, which can help you stand out with a little extra effort and creativity.

It’s also smart to apply for a mix of scholarships and other financial aid options, not just no-essay ones. You can think of no-essay scholarships as a quick and easy break from the more time-consuming applications.

Recommended: How to Pay for College

Is There a Good Time to Apply for a No Essay Scholarship?

No-essay scholarship application deadlines vary — there’s no set “season” like there is for college and FAFSA deadlines. Each scholarship has its own timeline, so it’s important to keep an eye out throughout the year.

Whether or not a scholarship requires an essay, it’s a good idea to start applying as early as possible. For high school students, the summer between junior and senior year is a great time to begin. Remember, the more applications you send out, the better your chances of winning scholarship money.

If I Win a No Essay Scholarship, What Can the Funds Be Used For?

No-essay scholarships may have set rules for how you can spend your scholarship award, similar to how colleges and scholarship programs have specific application requirements.

Generally speaking, scholarship funds are meant for college expenses like tuition, fees, textbooks, and school supplies. However, some independent scholarships are more flexible and might let you use the money for things like housing, meal plans, or even technology.

Keep in mind that your scholarship might not cover expenses like transportation, groceries, off-campus dining, and clothing. And if you have any money left over, it’s a good idea not to spend it on unrelated expenses.

Sometimes, you may need to repay your award money if you use it on unrelated costs. Make sure to review the scholarship rules and guidelines before deciding how to use your scholarship money.

Types of No Essay Scholarships

There are usually two types of no-essay scholarships available for students: sweepstakes and video scholarships.

Sweepstake Scholarships

A scholarship sweepstakes is a type of no-essay scholarship where winners are chosen randomly, much like a lottery. As long as you meet the basic requirements and apply on time, you have a chance to win money to put toward your higher education costs.

Most of these scholarships don’t require extra materials, like transcripts or letters of recommendation, and many are awarded monthly or several times a year.

Keep in mind, though, that you often need to enter each month to stay eligible. So don’t just submit once and forget about it. Setting a reminder in your calendar can help you stay on track and improve your chances.

Video Scholarships

Not all no-essay scholarships are entirely hassle-free. Instead of writing an essay, you might need to create and edit a five-minute video, which can take just as much time.

Choose the type of scholarship that plays to your strengths. If making videos is your thing, go for it. If writing is more your style, stick with that. Many scholarships offer flexibility in how you choose to express yourself.

Top No Essay Scholarships 2026

Here are a few top no-essay scholarships you can apply for in 2026.

“Be Bold” No Essay Scholarship

The “Be Bold” No-Essay Scholarship is a $25,000 award for students of any education level, field of study, state, or GPA. It’s an easy scholarship to apply for and the winner is the one who creates the “boldest” profile — one that is earnest, determined, and moving.

Project Yellow Light Hunter Garner Scholarship

The Project Yellow Light Hunter Garner Scholarship is an $8,000 award open to high school and college students who create a winning video that discourages distracted driving, especially phone use while driving. Project Yellow Light also offers a $2,000 scholarship for a radio competition and another $2,000 scholarship for a billboard competition.

Elks National Foundation Legacy Awards

The Elks National Foundation Legacy Awards is a $4,000 scholarship for high school seniors who are children or grandchildren of living Elks members or Lodge charter members (including stepchildren and legal wards).

Edvisors Scholarship

Edvisors Scholarship is a monthly, $1,000 scholarship open to students who are at least 17 years old and planning to attend or currently attending college in the U.S. Bookmark the page so you can come back each month and enter.

Niche No Essay Scholarship

The Niche No-Essay Scholarship allows high school and college students to apply for a chance to win $25,000 toward college expenses. Niche offers many additional scholarships you can look into, as well.

CampusReel Scholarship

To sign up for the CampusReel $2,000 no-essay scholarship, students must watch one student-led virtual tour, and then simply provide their name and email address.

SoFi Scholarship Giveaway

Enter SoFi’s monthly scholarship for a chance to win $2,500. This sweepstakes scholarship is for students over 17 enrolled or accepted in a college or university.

Sallie Mae College Scholarship

Sallie Mae also offers a $2,000 sweepstakes scholarship that’s awarded monthly and is open to high school juniors, seniors, and all college students.

Smart Owl No Essay Scholarship

The Smart Owl No-Essay Scholarship is a $1,000 award given out each month to four students. It is open to U.S. residents who are high school or college students aged 16 and older.

The “No Sweat” Scholarship

The Cirkled In “No Sweat” Scholarship is a $2,500 cash scholarship that’s open to students aged 13 and older. The application is quick and easy, taking just two steps to enter and complete your portfolio.

Who Can Apply for No Essay Scholarships?

Almost anyone in school can usually apply for no-essay scholarships. Whether you’re in high school, working on your undergrad, or even pursuing a graduate degree, there are options available for you.

For example, the Sallie Mae Scholarship is open to students at all levels. Plus, Sofi offers $2,500 no-essay scholarships to students every month.

Are Video Scholarships Easier to Apply for Than No Essay Scholarships?

With the rise of platforms like Instagram, YouTube, and TikTok, creating videos might feel more natural than writing essays. However, they may require more effort in planning, filming, and editing compared to no-essay scholarships.

But keep in mind, some video submissions may require a script, so a little writing could still be a part of the process. Writing a script can be similar to writing an essay — it might take a few tries to get it just right. That said, it can be a fun and creative alternative.

Do I Have to Be in College to Apply for a No Essay Scholarship?

You don’t have to be in college to apply for no-essay scholarships. In fact, starting your search early can improve your chances of winning. Some scholarships are even open to middle school students, so it’s never too soon to begin. Ideally, you should start exploring your options as early as freshman year of high school.

If you’re already in college, don’t worry. There are still plenty of scholarships you can apply for as long as you haven’t graduated.

The Takeaway

If you’re running low on financial aid for the school year, applying for no-essay scholarships can help cover some of your college costs. Some are like sweepstakes and pop up every month, so the more you apply, the better your chances. Others might need a bit more effort, like a video entry. Even though the award amounts might be small, the applications can be quick and give you a break from writing essays.

In addition to no-essay scholarships, you can apply for regular scholarships, grants, federal student loans, and private student loans. A combination of these, in addition to cash savings, can be used to cover the cost of college.

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 current college students apply for no essay scholarships?

Yes, no-essay scholarships are usually open to all students, from high school students up to graduate students. Whether you’re an undergrad or working toward a graduate degree, there are plenty of no-essay scholarship opportunities available to you.

Can you get scholarships without essays?

Yes, you can get scholarships without writing essays. No-essay scholarships typically require you to share some basic personal information, and sometimes you might have the choice to submit a video instead of an essay.

Has anyone actually won a no essay scholarship?

Students win no-essay scholarships all the time. However, keep in mind that some require exceptional talent, while others act more like sweepstakes contests with fewer requirements but more competition.

About the author

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.

Photo credit: iStock/yasindmrblk

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.

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.

SOISL-Q324-090

Jan

2026

How to Pay for Grad School

By Kayla McCormack | Budgeting & Goals, Fresh Out of School, Student Loans, student_loan | No Comments

Table of Contents

Ways to Pay for Grad School Without Taking on Debt
How to Pay for Grad School With Student Loans
Steps to Take Before Applying to Graduate School
The Takeaway

Students who graduate with a master’s degree carry an average debt of $69,140, according to the Education Data Initiative. Fortunately, there are many ways to pay for grad school, including options that don’t require borrowing.

Keep reading to learn more on how to pay for grad school in 2025, including how to take out graduate student loans, how to qualify for scholarships and grants, and other ways to reduce your total tuition.

Key Points

• When it comes to financing grad school, filling out the Free Application for Federal Student Aid (FAFSA) is required to determine eligibility for federal financial assistance, including grants and loans.

• Investigate grants, scholarships, and fellowships offered by your chosen university’s financial aid office, as these can significantly reduce tuition costs.

• Some employers provide tuition reimbursement programs to support employees pursuing further education. Review your company’s policies to see if this benefit is available.

• Seek out scholarships and grants from private organizations, nonprofits, and government agencies, which can provide additional funding without the need for repayment.

• After exhausting grants and scholarships, explore federal student loans, which often have favorable terms. If additional funding is needed, private student loans are also an option, though they may come with higher interest rates.

Ways to Pay for Grad School Without Taking on Debt

You can pay for grad school without taking on debt by filling out the FAFSA, applying for scholarships and grants, or working for an employer who offers tuition reimbursement. Continue reading for even more strategies to pay for grad school without taking on debt.

1. Fill Out the FAFSA

The first step to seeing if you qualify for financial aid is to fill out the Free Application for Federal Student Aid, or FAFSA®.

Your FAFSA will determine your eligibility for federal student loans, federal work-study, and federal grants. In addition, your college may use your FAFSA to determine your eligibility for aid from the school itself. Here’s a closer look at federal grants and federal work-study programs.

Federal Grants

Unlike student loans, federal grants do not need to be repaid. Grants for college for grad students include TEACH Grants and Fulbright Grants.

The TEACH Grant, or Teacher Education Assistance for College and Higher Education Grant, has relatively stringent requirements and is available for students pursuing a teaching career who are willing to fulfill a service obligation after graduating.

The Fulbright Grant offers funding for international educational exchanges. Sponsored by the U.S. government, it supports students, scholars, teachers, and professionals to study, research, or teach abroad.

Federal Work-Study Program

Federal work-study for grad students provides part-time jobs to help cover educational expenses. These positions are often related to a student’s field of study or serve the community. Eligibility is based on financial need, and earnings are exempt from being counted as income on the FAFSA, maximizing financial aid opportunities.

2. Figure Out What Your University Can Offer You

After narrowing down your federal options, make sure to consider what university-specific funding might be available. Many schools offer their own grants, scholarships, and fellowships. Your school’s financial aid office likely has a specific program or contact person for graduate students who are applying for institutional assistance.

Many schools will use the FAFSA to determine what, if anything, the school can offer you, but some schools use their own applications.

Although another deadline is the last thing you need, seeking out and applying for school-specific aid can be one of the most successful ways to pay for grad school. Awards can range from a small grant to full tuition remission.

3. Employer Tuition Reimbursement

It might sound too good to be true, but some employers are happy to reimburse employees for a portion of their grad school costs. Employers that have tuition reimbursement plans set their own requirements and application processes.

Make sure to consider any constraints your employer puts on their tuition reimbursement program, including things like staying at the company for a certain number of years after graduation or only funding certain types of degree programs.

4. Become an In-State Resident

If you’re applying for graduate school after taking a few years off to work, you might be surprised to find how costs have changed since your undergraduate days. Graduate students interested in a public university can save tens of thousands of dollars by considering a university in the state they already live in.

Each state has different requirements for determining residency. If you are planning on relocating to attend grad school, be sure to look into the requirements for the state of the school you are planning to attend.

Certain states require only one year of full-time residency before you can qualify for in-state tuition, while others require three years. During that time, you could work as much as possible to save money for graduate school. More savings could mean fewer loans.

Recommended: 6 Ways to Save Money for Grad School

Serious savings. Save thousands of dollars
thanks to flexible terms and low fixed or variable rates.

5. Become a Resident Advisor (RA)

Resident Advisors (RAs) help you get settled into your dorm room, show you how to get to the nearest dining hall, and yell at you for breaking quiet hours.

RAs may be underappreciated, but they’re often compensated handsomely for their duties. Students are typically compensated for a portion or all of their room and board, and some schools may even include a meal plan, reduced tuition, or a stipend. The compensation you receive will depend on the school you are attending, so check with your residential life office to see what the current RA salary is at your school.

Serious savings. Save thousands of dollars

thanks to flexible terms and low fixed or variable rates.

6. Find a Teaching Assistant Position

If you’re a graduate student, you can often find a position as a Teaching Assistant (TA) or Research Assistant (RA) for a professor. The position will be related to your undergrad or graduate studies and often requires grading papers, conducting research, organizing labs, or prepping for class.

TAs can be paid with a stipend or through reduced tuition, depending on which school you attend. Not only can the job help you to potentially avoid student loans, but it also gives you networking experience with people in your field.

The professor you work with can recommend you for a job, bring you to conferences, and serve as a reference. Being a TA may help boost your resume, especially if you apply for a Ph.D. program or want to be a professor someday. According to ZipRecruiter, the average TA earns $15.66 an hour, as of November 2025.

Recommended: How to Become a Graduate Assistant

7. Apply for Grants and Scholarships

Applying for grants and graduate scholarships is a smart way to fund graduate school without accumulating debt. Start by researching opportunities specific to your field, school, or demographics. Many scholarships focus on academic achievements, leadership, or community involvement, while grants often emphasize financial need.

An easy way to search for scholarships is through one of the many websites that gather and tag scholarships by criteria. Keeping all your grad school and FAFSA materials handy means that you’ll have easy access to the information you’ll need for scholarship applications.

8. Utilize Military Education Benefits (If Eligible)

Military education benefits can significantly reduce or even eliminate the cost of graduate school for qualifying service members, veterans, and sometimes their families. Programs like the GI Bill® and the Yellow Ribbon Program can cover tuition, fees, and even housing costs at many institutions. Additionally, some branches offer tuition assistance while on active duty, enabling students to pursue advanced degrees with little to no out-of-pocket expenses.

How to Pay for Grad School With Student Loans

Grad students may rely on a combination of financing to pay for their education. Student loans are often a part of this plan. Like undergraduate loans, graduate students have both federal and private student loan options available to them.

Federal Loans for Graduate School

There are different types of federal student loans, and each type has varying eligibility requirements and maximum borrowing amounts. Graduate students may be eligible for the following types of federal student loans:

• Direct Unsubsidized Loans. Eligibility for this loan type is not based on financial need.

• Direct PLUS Loans. Eligibility for this loan type is not based on financial need; however, a credit check is required to qualify for this type of loan. As of July 1, 2026, Grad PLUS Loans will no longer be available (Parent PLUS Loans will still be available, however).

• Direct Consolidation Loans. This is a type of loan that allows you to combine your existing federal loans into a single federal loan.

Federal Student Loan Forgiveness Programs

Federal student loan forgiveness programs either assist with monthly loan payments or can discharge a remaining federal student loan balance after a certain number of qualifying payments.

One such program is the Public Service Loan Forgiveness (or PSLF) program. The PSLF program allows qualifying federal student loan borrowers who work in certain public interest fields to discharge their loans after 120 monthly, on-time, qualifying payments.

Additionally, some employers offer loan repayment assistance to help with high monthly payments. While loan forgiveness programs don’t help with the upfront cost of paying for grad school, they may offer a meaningful solution for federal student loan repayment. (Unfortunately, private student loans don’t qualify for these federal programs.)

Private Loans for Graduate School

If you’re not eligible for scholarships or grants, or you’ve maxed out how much you can borrow using federal student loans, you can apply for a private graduate student loan to help cover the cost of grad school.

Private loan interest rates and terms will vary by lender, and some private loans have variable interest rates, which means they can fluctuate over time. Doing your research with any private lender you’re considering is worth it to ensure you know exactly what a loan with them would look like.

Also, keep in mind that private student loans do not offer the same benefits and protections as federal student loans. It’s best to use all federal funding first before relying on private funding.

Comparing Federal vs. Private Loan Options

Understanding the differences between federal vs private student loans is important when considering grad school loans. Each option offers unique benefits, eligibility rules, and repayment features that can impact long-term costs.

• Federal loans: These loans are funded by the government and typically offer more borrower protections, such as fixed interest rates, income-driven repayment plans, and potential for deferment, forbearance, or loan forgiveness programs. They usually don’t require a cosigner and are often based on financial need.

• Private loans: Offered by banks, credit unions, and other private lenders, these loans often have variable interest rates that can be higher than federal loans. They usually require a strong credit history or a cosigner, and their repayment terms and borrower benefits are generally less flexible than federal options.

Recommended: Private Medical School Loans

Steps to Take Before Applying to Graduate School

Before applying to graduate school, it’s important to consider the earning potential offered by the degree in comparison to the cost. At the end of the day, only you can decide if pursuing a specific graduate degree is worth it. Here are a few steps to take before applying to grad school.

1. Research Potential Earnings by Degree

Perhaps you are already committed to one degree path, like getting your JD to become a lawyer. In that case, you should have a good idea of what the earning potential could be post-graduation.

If you’re considering a few different graduate degrees, weigh the cost of the degree in contrast to the earning potential for that career path. This could help you weigh which program offers the best return.

2. Complete the FAFSA

Regardless of the educational path you choose, filling out the FAFSA is a smart move. It’s completely free to fill out and you may qualify for aid including grants, work-study, or federal student loans. Federal loans have benefits and protections not offered to private loans, so they are generally prioritized first.

3. Estimate Your Cost of Attendance

Estimating your cost of attendance will help you understand the full financial commitment beyond just tuition. This estimate should include fees, textbooks, housing, transportation, and personal expenses, as well as potential increases in tuition over time. By creating a detailed budget upfront, you can compare programs more accurately, anticipate funding needs, and avoid surprises once you enroll.

4. Explore Financing Options

As mentioned, you may need to rely on a combination of financing options to pay for grad school. When scholarships, grants, and federal student loans aren’t enough, private loans can help you fill in the gaps.

When comparing private lenders, be sure to review the loan terms closely — including factors like the interest rate, whether the loan is fixed or variable, and any other fees. Review a lender’s customer service reputation and any other benefits they may offer, too.

The Takeaway

Grad school is a big investment in your education, but the good news is there are grants and scholarships that you won’t have to pay back. Some employers may also offer tuition reimbursement benefits, or you could find work as a Resident Advisor to supplement your tuition costs. If you need more funding to finance grad school, there are federal and private student loans.

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

Does FAFSA give money for grad school?

FAFSA provides access to federal financial aid for graduate school, including Direct Unsubsidized Loans and Grad PLUS Loans (through July 1, 2026). Graduate students may not qualify for federal grants but can explore assistantships, scholarships, and work-study opportunities through FAFSA to help cover their educational expenses.

Does Pell Grant cover a master’s degree?

No, the Pell Grant does not cover master’s degree programs. It is a federal grant specifically designed for undergraduate students with financial need. Graduate students must explore other funding options like scholarships, assistantships, and federal loans to finance their education.

Is it worth paying for grad school?

Paying for grad school can be worth it if the degree significantly boosts your career prospects, earning potential, or personal goals. Consider the return on investment, including salary increases and opportunities. Research funding options and weigh potential debt against long-term benefits to determine if grad school aligns with your financial future.

What are the best student loans for graduate school?

The best student loans for graduate school often start with federal options, like Direct Unsubsidized Loans, because they offer fixed rates, borrower protections, and forgiveness eligibility. Private student loans can be a good alternative for borrowers with strong credit who may qualify for lower interest rates and flexible terms.

Can I get scholarships for graduate school?

Yes, you can get scholarships for graduate school. Many universities, private organizations, professional associations, and foundations offer merit-based, need-based, and field-specific awards. You can apply before or during your program, and using scholarship databases or your school’s financial aid office can help you find opportunities that match your background and goals.

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.

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

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

SOISL-Q425-047