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As a student (or parent) it can be easy to focus solely on the college application process, and completely forget about financial aid. You spend so much time studying for the SATs (or ACTs) and tweaking your college essay so it perfectly represents you, that after you’ve been accepted and the reality of tuition payments set in, you might feel momentary panic.

It’s no secret that college tuition is expensive. Students and parents save for years to pay for higher education, but sometimes that’s just not enough. According to a Sallie Mae® study, “How America Pays for
College 2021 ,” parent income and savings covered 45% of college costs while student income and savings covered 8% of the costs.

Many of us rely on financial aid to bridge the payment gap. Financial aid may come from multiple sources, including scholarships, grants, work-study, federal student loans, and private student loans.

Scholarships and grants are extremely useful forms of financial aid, since students are not typically required to pay back the money they receive. An online survey of students and parents found 72% of college families in 2021 relied on scholarships and grants to cover a portion of college expenses, according to Sallie Mae’s study.

Scholarships, grants, and savings often aren’t enough to cover the cost of attending college. Sallie Mae says 47% of college families borrowed money to help pay for college in 2021. Some families used home equity loans and credit cards, but federal student loans represented the most frequently used source of borrowed money followed by private student loans.

To top it all off, the financial aid application process can be confusing. Between federal aid and other scholarships, it can be difficult to keep everything straight.

Most often, the first step in applying for financial aid is filling out the Free Application for Federal
Student Aid (FAFSA®). You can begin filling out the FAFSA on October 1 for the following academic year. The federal FAFSA deadline for the 2023–24 academic year is June 30, 2024, but you’ll likely want to file well before the school year starts – colleges and states may have their own FAFSA deadlines.

Some schools use an additional form to determine scholarship aid — the College Scholarship
Service Profile .

Taking the effort to apply for financial aid early can have a positive impact on your tuition bill. Below we highlight seven financial aid secrets you should know.

1. Decision Day vs Summer Melt

May 1 is usually decision day, the deadline when prospective college students must decide which college they plan to attend in the fall. But even after this deadline, students can change their minds. This phenomenon is known to industry professionals as “summer melt,” and sometimes it’s triggered by FAFSA verification setbacks.

Students who receive insufficient need-based financial aid, for example, might be compelled to reconsider their college enrollment decisions. Summer melt can give you an opportunity to select a more affordable school for you if you’ve encountered a FAFSA verification roadblock.

Summer melt is a common problem that causes schools to lose students during the summer. Because of this, schools may have a bit of secret wiggle room in their acceptance policy to admit new students over the summer for the fall semester.

2. Writing a Letter

You might be able to take advantage of summer melt with this secret: write a letter. After you get your financial aid offer, you could write a letter to your school’s financial aid office to open the lines of communication.

Let them know how excited you are to attend school in the fall. That’s where you could include a thoughtfully worded inquiry for any additional aid that you might qualify for as a result of summer melt.

When students decide to switch schools or not attend at the last minute, it means that they also won’t be using their financial aid award — which could now be available to other students.

3. Calling the Financial Aid Office

Another way to potentially take advantage of summer melt is to call your school’s financial aid office. Instead of calling immediately after you receive your financial aid award, think about calling in June or July. This allows financial aid offices time to account for students who have declined their financial aid packages.

An appropriately timed call to the financial aid office at your school could mean additional financial aid is allocated to your package — no guarantees, of course, but it never hurts to ask.

4. Submitting Paperwork and Applications On Time

Every school’s financial aid office has to follow a budget. Some financial aid is offered on a first-come, first-served basis, so it helps to submit forms, like the FAFSA, and other applications, on time or even ahead of schedule.

You may be out of luck if you apply for assistance after your university’s financial aid office has met their budget for the year. Some states have early winter deadlines for awarding scholarships and grants. Tennessee residents, for example, must complete their FAFSA by February 1 to be considered for a state-funded Tennessee Student Assistance Award grant.

You can check the deadlines for financial aid in your state through the U.S. Department of Education’s Federal Student Aid website .

5. Being Prepared

Have the basics ready to go before you sit down to fill out the FAFSA. If you have all of the information you need before you begin filling out the FAFSA, you’ll likely have an easier time filling out the information.

Usually, each parent and the student will need to create a username and password, which is called the Federal Student Aid ID (FSA ID). You’ll also need:

•   Social Security numbers (for you and your parents)

•   Bank statements and records of untaxed income (possibly)

•   You and your parents’ tax returns (aid awards are based on income from two years ago)

•   Any W2 forms

•   Net worth calculations of your investments (for students and parents)

6. Being Wary of Services that Charge You for Help

If you need assistance filling out the FAFSA, avoid any services that charge you. The first F of FAFSA stands for “Free,” so there is no need to pay for a service to fill the form out for you.

If you need assistance filling out the FAFSA, there are plentiful online resources through the U.S. Department of Education .

7. Filing the FAFSA Every Year

For every year you are a student and want to receive federal aid, you’ll have to file the FAFSA. Get in the habit of filing it every fall, so you’re closer to the top of the financial aid pile.

The Takeaway

Scholarships and grants can be super helpful additions to a federal financial aid package. The money can reduce your tuition bill and doesn’t usually need to be repaid. Work-study can also be beneficial in helping college students make ends meet.

If you need additional help financing your college experience, SoFi offers private student loans with an entirely digital application process and no fees whatsoever. Potential borrowers can choose between a variable or fixed interest rate and have the option to add a cosigner to the loan.

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.

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

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

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.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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Pursuing a degree in another country can be an incredible learning opportunity — you can explore another culture and maybe even learn another language. International students may have to navigate different requirements when it comes to funding their education.

International students studying in the U.S. may not be eligible for federal student loans or other forms of federal aid. However, there are private loans for international students available.

American students pursuing a degree at an international university may be able to apply federal financial aid to their school costs. Keep reading for important details about student loans for international students.

What Are International Student Loans?

International student loans are available to students who are studying in a foreign country. For international students in the U.S., This generally means borrowing private student loans because for the most part, federal student loans are not an option for international students.

American students interested in studying abroad may be able to use federal student loans to pay for college costs. The Department of Education maintains a list of international colleges that participate in the Direct Loan Program. If you are interested in pursuing a degree abroad, consider confirming with the school as this list is updated quarterly.

To apply for federal student loans, interested students must fill out the Free Application for Federal Student Aid (FAFSA®) annually.

How International Student Loans Work

Student loans for international students in the U.S. are generally private student loans. These function similarly to other types of loans. After evaluating loan terms and interest rates at a few lenders, a student can apply for a loan with the lender of their choosing.

Each lender will likely have their own student loan application requirements. As a part of their decision making process, lenders will review factors including the applicant’s credit score and financial history.

Are Cosigners Required for International Student Loans?

Student loans for international students often require a cosigner. A cosigner is someone who legally agrees to repay the loan if the primary borrower fails to do so. Because college students may have little or no credit history, adding a cosigner who has a strong credit history can potentially help improve their chances of being approved. Additionally, lenders may require the borrower’s cosigner to be a U.S. citizen or permanent resident who has resided in the U.S. for at least two years.

International Student Loan Terms

When evaluating international student loans, borrowers will want to look at factors including interest rate, APR, and the repayment plans available. It’s also important to think critically about how much you plan to borrow in student loans.

Interest and APR

It’s important to understand the difference between interest rate vs. APR. Briefly, interest rate is just the cost charged for borrowing money. It’s generally charged as a percentage of the loan amount.

APR is a reflection of the interest rate and any other fees associated with the loan. When comparing loan quotes from different lenders, it’s more effective to compare the APR because it provides a more comprehensive picture of the total cost of borrowing.

Recommended: The Ultimate Student Loan Terminology Cheat Sheet

Student loans for international students may have fixed or variable interest rates. A variable interest rate may fluctuate over the life of the loan. Generally, a variable interest rate is tied to a prevailing interest rate. Starting in June 2023, the benchmark rate for student loans in the U.S. will be the Secured Overnight Financing Rate (SOFR).

Repayment Plans

The repayment plan will also vary based on the lender. The repayment period on student loans for international students may vary from 10-25 years. Generally speaking, there are a few types of repayment plans available, though it’s important to emphasize that each lender will set its own terms and conditions.

Some student lenders allow student borrowers to defer payments while they are in school on a full-time basis. This can be helpful for students who don’t have much room to make payments, but for the most part, interest will continue to accrue while the loan is deferred.

Other repayment plans may require just interest only payments while the student is enrolled in school. Other loans may require immediate repayment of both interest and principal, or initial loan amount.

Be sure to understand the loan’s repayment plan before borrowing.

How Much to Borrow

While borrowing student loans could help make international study a reality — it’s important to think critically about how much to borrow. Overborrowing can be a costly mistake. To determine how much you need, evaluate costs associated with the education including tuition, fees, room and board. Don’t forget to factor in additional costs that may occur as a result of living and studying in a foreign country.

Counting All Your Costs

You may need to apply for a student visa, as well as transportation costs. Round-trip tickets to a foreign country can also be very expensive, so if you go to school there, you’ll need to consider that you may miss out on family events like holidays or birthdays.

Regular Student Loans vs International Student Loans

Student loans for international students and traditional student loans function similarly. In both situations, an individual borrows a sum of money to pay for their education and then repays that money at a set interest rate.

Student loans for international students in the U.S., as mentioned, are generally private student loans. Most international students aren’t eligible for federal student loans or other types of financial aid.

Student Loans From SoFi

International students paying for college have a few options available to them. While they most likely won’t qualify for federal student loans, they can use a combination of savings, scholarships, and private student loans to pay for their education.

With SoFi, there are zero fees for private student loans. And flexible repayment options can help find a loan that works for your budget.

FAQ

Can foreign nationals get US student loans?

Yes, it’s possible for international students to get student loans in the U.S. If the student is a qualifying non-citizen they may qualify for federal student loans. Otherwise, private lenders offer student loans to international students.

How can international students get access to student loans?

International students can apply for student loans with a private lender. They may be required to have a cosigner on their application. Some lenders may require the cosigner be someone who is a U.S. citizen or permanent resident.

How do most international students pay for university?

International students may pay for their education with a combination of funding. Savings, independent or school-specific scholarships, or private student loans.

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.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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

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

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

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

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Heading off to graduate school? You’re probably not a newbie at the financial aid process after your years as an undergraduate. You might even have a few things to say about the increase in graduate student loan borrowing.

Out of the over $1.5 trillion in student loan debt in the United States, dollars borrowed by graduate school students are rising more quickly than undergraduate debt.

The reality is that, when looking at funds borrowed over the last academic year, the percentage taken out by graduate students is at 40% of the total, compared to 32% in 2002.

However, it’s a mistake to assume that graduate student loans are the same as undergraduate loans. There are actually significant differences between the two, and knowing those differences can be the key to saving money on your grad school debt in the long run. Here are some key factors to consider when taking out graduate school loans.

What Does Undergraduate Mean

In the context of student loans, undergraduate refers to someone who has not yet completed their bachelor’s degree.

What Is an Undergraduate Student

An undergraduate student is someone who is pursuing their Bachelor’s or associate’s degree.

What Is an Undergraduate Degree

Associates degrees are generally offered at two-year community colleges. A bachelor’s degree generally takes about four years to complete. Bachelor’s degrees are often completed at four-year colleges or universities. There is a wide variety of Bachelor degree programs ranging from history, English, to engineering, math, chemistry, and more. Three of the most common types of bachelor’s degrees include Bachelor of Arts, Bachelor of Fine Arts, and Bachelor of Science. Program requirements for undergraduate degrees will vary by institution.

What Does Graduate Mean

A graduate is someone who has successfully completed a specified course of work. In terms of student loans, graduate refers to any student who has completed their bachelor’s degree.

What Is a Graduate Degree?

Graduate degrees are specialized degrees that students can pursue after completing their bachelor’s or undergraduate course work. Graduate degrees include master’s, doctorates, and PhD’s, MBA’s, and JD’s. Depending on the program coursework for a graduate degree can take anywhere from one to six years to complete.

What Is a Graduate Student?

A graduate student is someone who is pursuing graduate studies. Law students, medical students, and PhD candidates are all examples of graduate students.

Recommended: Applying to Graduate School: Smart Tips & Strategies 

Differences Between Undergraduate and Graduate Programs

Beyond differences in coursework, there are few differences when it comes to student loans and financial aid options for undergraduate and graduate students.

1. Graduate Students Are Typically Considered Independent Students

As a graduate student, you’ll still need to (complete the FAFSA®) to qualify for federal student aid; you no longer need to include financial information about your parents on the form.

That’s because students who are pursuing either a master’s or doctorate degree are virtually always considered to be independent students.

There are a couple of key benefits associated with being an independent student. First, it helps streamline filling out the FAFSA. And, secondly, as an independent student, you’ll likely report much less income because your family’s earnings generally are no longer considered when financial aid eligibility is calculated, which could potentially give you access to additional aid options.

There are circumstances where undergraduate students can also be considered independent, but it’s usually more common with graduate students.

2. Graduate Student Loans Typically Have Higher Interest Rates

The 2022-2023 federal student loan interest rates for graduate and professional students are 6.54% for Direct Unsubsidized Loans for Graduate or Professional students and 7.54% for Direct PLUS loans — much higher than the 4.99% interest rate on federal undergraduate student loans.

(Note: Federal student loan interest rates are reevaluated annually, and updates are announced in early July.) Private student loans, another option for grad students, can come with even higher rates.

Graduate students can use federal student loans to pay for qualifying education expenses, including tuition, fees, college textbooks, and living expenses.

PLUS loans are funded by the U.S. Department of Education and require a credit check, although the credit requirements are not as stringent as they would be with a private lender. At 7.54%, they have the highest interest rates of all the federal student loans.

Federal loans also have fees that should be factored into the total cost of borrowing. For Direct subsidized and unsubsidized loans, the loan fee for the 2022-2023 school year was 1.057%. For Direct PLUS Loans, the fee was 4.228%.

These fees are deducted proportionally from each loan at the time of disbursement. This means that the amount of money a borrower receives will be less than the total value of the loan. Borrowers are still responsible for repaying the total value of the loan.

3. There Are No Subsidized Graduate Student Loans

Grad school federal loans start accruing interest charges while you’re a full-time student, unlike subsidized loans for undergraduates.

Say for example, you borrowed $20,000 in Direct Unsubsidized Loans (for graduates) to cover the cost of tuition when you started the program. When you factor in the current disbursement fee of 1.057%, you would have received approximately $19,789.

Since this loan type is unsubsidized, it will accrue interest while you attend school. Note, that even though you received $19,789, interest will accrue based on the loan total of $20,000. If the program is two years long, and you made no payments during that time, the loan would have accrued approximately $2,616 (assuming the interest rate stays the same 6.54% for those two years). For undergrads with subsidized loans, the interest clock doesn’t start until after graduation.

4. Borrowing Limits Are Higher for Grad Students

Typically, graduate students can borrow $20,500 annually in Direct Unsubsidized Loans, although there is currently a lifetime cap of $138,500 when undergrad loans and graduate school Direct loans are combined. If you’re in a qualifying health field, you may have a higher lifetime limit, potentially up to $224,000.

Compare that to annual limits for undergraduates, and they’re typically capped at $5,500 during year one; $6,500 for year two; and $7,500 for subsequent years, with a total availability of $31,000.

Having said that, although graduate students have more flexibility in how much can be borrowed, it can be challenging to pay back those higher amounts of debt.

5. Graduate Students May Qualify for Competitive Rates on Private Student Loans

Private student loans aren’t backed by the federal government; they’re issued by private lenders or banks.

If you’ve already established a solid credit history and/or have steady income coming in, those are important cornerstones that may help you qualify for more competitive rates on private student loans. This is in contrast to the typical undergrad, who may be new to credit and lending entirely, and don’t usually have well-paying, full-time jobs.

Though keep in mind that private student loans don’t necessarily offer the same borrower protections as federal student loans — things like income-driven repayment plans or loan forgiveness options. Because of this, federal loans are usually prioritized over private student loans.

Recommended: Private Student Loan Guide

6. Student Loan Refinancing Can Be a More Viable Option for Graduate Student Loans

While anyone with higher education debt can apply to refinance student loans, there are a couple reasons why this option tends to be more popular with grad students.

First, in order to qualify to refinance loans at a lower interest rate than what a borrower may currently have, a strong credit history that includes a positive track record of paying debts is important — and proof that you make enough money to pay back the loan (among other factors that will vary by lender). Depending on a graduate student’s background, there is a chance that they might be viewed as a more stable lending choice than an undergraduate.

Additionally, some graduate programs offer the potential for students to increase their earning potential after graduation, which also could be appealing to private lenders.

The other reason is that undergrads with federal student loans enjoy interest rates that are typically quite low already, and can be tough to beat when compared to private loan interest rates. Grad students, on the other hand, often carry student loan debt with higher interest rates and generally have higher debt burdens than undergraduate students.

With a strong credit history and steady employment (among other factors), it may be possible to get a better deal — and save money over the life of the loan — through refinancing.

Student loan refinancing won’t be the right option for everyone. Federal loans come with a variety of protections and benefits, like income-driven repayment plans and loan deferment. When you refinance a federal loan, it becomes a private loan, and will no longer qualify for any federal benefits.

7. Federal Grants are Few and Far Between for Graduate Students

Even if you were eligible for a Federal Pell Grant the last time around, you can’t count on that for graduate school. What are Pell Grants? They are a need-based grant that does not need to be repaid, and are typically awarded only to undergraduate students.

There are a variety of other opportunities available to grad students to help them finance their education, including some grad school scholarships, other grants, and fellowships. Grants are generally offered based on financial need while fellowships are awarded based on a student’s academic performance and research.

Scholarships, grants and fellowships are available through sources like federal and state government, schools, and even some corporations. Each opportunity might have very specific application criteria or might only be for students specializing in certain areas of study. You may be able to find even more scholarship money, by looking for any scholarships that go unclaimed each year. Contact your school’s financial aid office and check out SoFi’s guide to unclaimed scholarships for more information.

Thinking Outside the Box: Paying for Graduate School

When you think about paying for graduate school, it’s natural to consider student loans, but there are additional avenues likely worth pursuing. For example, your school of choice may offer scholarships, fellowships, and grants.

Typically, the college will use the information in the FAFSA® to decide what funding, if any, they can offer you.
Other times, though, there may be separate applications unique to your school; you can ask for specifics at the financial aid office. Sometimes, the award might be small; other times, it might be full tuition reimbursement.

Becoming a Teaching or Research Assistant

Some graduate students work on campus as teaching or research assistants. These opportunities could offer the opportunity for students to expand their skill set while earning some income.

Working Full-Time as a Grad Student

If you’re pursuing a graduate degree while working full time, you can check with your employer to see if they offer a tuition reimbursement plan.

If they do, the program will have its own parameters and processes.

Sometimes, if you accept funds from this program, you’ll need to stay at the company for a predetermined amount of time; other times, they might fund only certain degrees.

Still other times, they may not specifically have tuition reimbursement funding available, but there might be professional development dollars you can access. Or, your employer may be willing to allow you to work a more flexible schedule to accommodate your class schedule. It doesn’t hurt to ask!

Finding Scholarships

You can also use databases like FastWeb or SoFi’s scholarship search tool to see if there are private scholarships available that you might qualify for.

Want access to more student loan resources? Explore our student loan help center to help guide you in your debt repayment!

The Takeaway

Graduate students are those who have completed some type of bachelor’s program and are pursuing an additional degree, such as an MBA, master’s, PhD, or doctorate. Graduate students may be eligible for different types of federal loans and financial aid than they were as an undergraduate. However, federal student loans for graduate students typically have a higher interest rate and fees than options for undergraduate students.

Student loans can get complicated — SoFi is here to help. In addition to the competitive refinancing options available to qualified borrowers, SoFi offers private graduate student loans that can help you to focus on your degree, not your debt.

With SoFi, there are no fees — meaning no origination fees, no late fees, and no insufficient fund fees — and no fuss. You can fill out our simple online application in just minutes and have access to live customer support seven days a week.

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

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.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

SoFi Student Loan Refinance
If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.