Going to College Archives

Dec

2025

A gavel rests on stacked, open legal books next to a scale of justice on a blue background, possibly representing law school scholarships.

Law School Scholarships Guide

By SoFi Editors | Budgeting & Goals, Building Your Career, Going to College, Student Loans, student_loan | Comments Off

Navigating the cost of law school can be daunting, but scholarships offer a valuable way to reduce financial burdens and make your legal education more affordable. Whether you’re a prospective law student or currently enrolled, understanding the variety of scholarships available can help you secure funding for your studies.

Keep reading to learn the types of law school scholarships available, tips for finding law school scholarships, and strategies for crafting compelling applications to increase your chances of success.

Table of Contents

The Average Cost of Law School
Types of Law School Scholarships
Finding Scholarships for Law School
Negotiating Wiggle Room
Federal vs Private Loans for Law School
The Takeaway

Key Points

• Law school is expensive, with average costs totaling $217,480, but scholarships can significantly reduce that burden.

• Scholarships come in many forms, including full-ride, general merit-based, diversity-based, law firm-sponsored, and scholarships specifically for women.

• Resources like LSAC, ABA, and Fastweb can help prospective law students find scholarships; many law schools and law firms also offer funding directly.

• Negotiating scholarship offers is possible at some schools; sharing competing offers can increase chances of receiving more aid.

• Federal student loans offer protections like income-driven repayment and PSLF, while private loans can fill funding gaps if federal aid and scholarships fall short.

The Average Cost of Law School

The average annual cost of tuition at a public, out-of-state law school in 2025 was $45,208 per year ($30,540 per year for in-state students). For private law schools, the average tuition in 2025 was $53,034 per year. And, according to Education Data Initiative, the average total cost of law school is $217,480.

Because students aren’t yet racking up those billable attorney hours, it can be helpful to research law school scholarship opportunities before applying to reduce the financial burden of law school.

Additional Costs Beyond Tuition (Books, Fees, Living Expenses)

As stated above, the average cost of law school is $217,480. This includes tuition, books, fees, and living expenses. Living expenses, including housing, transportation, and health insurance, will vary by location but often represent a large portion of a student’s total budget. Other expenses include:

• Books: $1,000-$2,250 per year

• Fees: $1,639-$1,790 per year

Together, these additional costs can make law school far more expensive than tuition alone suggests, so thorough financial planning is essential.

Types of Law School Scholarships

Per the numbers mentioned above, there might be a fair amount of sticker shock for those who haven’t yet applied for graduate school and are only thinking of someday going the lawyer route. Fortunately, there are a range of options for aspiring attorneys seeking to fund law school.

Full-Ride Tuition Law School Scholarships

Some colleges may offer full-ride tuition scholarships and need-based grants for college. Full-rides, of course, are not available at all law schools. If a law school doesn’t explicitly advertise or highlight information regarding full-ride opportunities, interested students can contact the school to ask.

Students deciding whether to apply to law school may want to familiarize themselves with the language universities adopt to explain these scholarships. In some cases, specific scholarships are designated for particular students. Full-ride law school scholarships can be highly competitive — with some schools offering as few as two to four per enrollment year. One potential tip for the search for scholarships is to target law schools with more tuition help.

General Law School Scholarships

There are many options for law school hopefuls to find potential scholarships. These scholarships are often awarded by the school based on academic merit, LSAT performance, leadership experience, or a demonstrated commitment to the field.

In addition to school-sponsored awards, numerous organizations, foundations, and legal associations offer general scholarships for law students. These external scholarships may emphasize academic achievement, professional potential, or community involvement and are often open to applicants from various backgrounds and career interests.

And finally, don’t overlook smaller or less-publicized awards, which may go as unclaimed scholarships. These opportunities can provide meaningful financial support, and dedicating time to research them can give you an advantage in reducing your overall law school costs.

Law School Scholarships from Law Firms

Some law firms offer scholarships to law school students. Applying is typically a straightforward process, with many firms requiring a short essay, transcripts, and sometimes references to be considered. One such law firm scholarship is offered by the Dominguez Firm, which offers $2,500 and $5,000 annually to selected student applicants.

On top of this, there’s the rising trend of law firms helping new hires to repay a portion of their student debt once onboarded.

Diversity Law School Scholarships

Some scholarships are awarded to students with diverse backgrounds. One example of this is the Legal Opportunity Scholarship Fund offered by the American Bar Association. This $15,000 scholarship is awarded to law students from a racial or ethnically diverse background.

The USLaw Network Foundation also offers a $5,000 scholarship for up to 10 diverse students.

Law School Scholarships for Women

Some scholarships are offered to women attending law school. One resource is the American Association of University Women (AAUW) Fellowships and Grants, which offers scholarships to women in graduate studies, including law.

A specific scholarship for women is the Pearce Law Firm Empowering Women in Law Scholarship. This is a $1,500 scholarship awarded to female law students (or those accepted into J.D. programs) across the U.S. Recipients must submit a 700–1,000‑word essay explaining why more women should pursue law, their motivation to become a lawyer, and how they plan to make an impact.

Need-Based Law School Scholarships

Need-based law school scholarships are awarded to students whose financial circumstances make paying for law school particularly challenging. These scholarships consider factors such as family income, assets, employment history, and overall financial need rather than academic metrics alone. Many law schools use detailed financial aid applications to determine eligibility, while some external organizations also offer need-based awards to help reduce reliance on student loans.

Public Interest Law Scholarships

Public interest law scholarships support students committed to careers serving the public good, such as working in legal aid, nonprofit organizations, government agencies, or advocacy groups. These scholarships often emphasize a dedication to social justice and community impact, helping ease the financial burden of law school for those pursuing lower-paid but mission-driven legal roles.

One example is the Furman Public Policy Scholarship at NYU, which is a full-ride scholarship offered to someone with a commitment to public interest law.

Finding Scholarships for Law School

Finding scholarships for law school starts with knowing where to look and which resources offer the most value. A strategic approach can help you uncover a mix of school-based, local, and national opportunities.

University Financial Aid Offices and Online Scholarship Databases

University financial aid offices and online scholarship databases are essential starting points for finding law school funding. Financial aid offices can guide you toward school-specific awards, FAFSA-related aid, and institutional grants, while reputable databases like LSAC, Fastweb, and AccessLex compile hundreds of external scholarships, making it easier to search by eligibility, interests, and financial need.

Local Bar Associations and Legal Organizations

Local bar associations, community foundations, and legal organizations frequently offer scholarships aimed at supporting aspiring attorneys within their region. These awards may prioritize students committed to public service, diversity in the legal field, or specific areas of law. Because they draw from smaller applicant pools, local scholarships can be more accessible.

Negotiating Wiggle Room

Doing all this research and the math around law school scholarships could put applicants in a more informed position when evaluating which program to attend — and, potentially, help them to identify schools more likely to be interested in their application.

A reality of today’s admissions process for law school is negotiating scholarships. Some schools have a strict policy against negotiating, but others fully expect their initial offer to be countered. That’s why it can help to save acceptance letters and anything in writing from schools that offer admission.

Suggestions for Negotiating Law School Scholarship Offers

Offer letters could be shared with competing schools, asking if they’re able to match another university’s aid. It might be uncomfortable asking for more tuition assistance upfront, but a little discomfort now could help applicants shoulder less law school debt later on.

Doing research on law schools (and figuring out the likely cost of living expenses at each institution) could help applicants to determine which scores or grades to aim for in an effort to make law school more affordable for them. Tabulating expenses (and having records on hand) may also demonstrate to universities that the amounts being negotiated are based on well-documented expenses.

Timing Your Negotiation for Maximum Leverage

To maximize your chances of a successful negotiation, begin the conversation before the deposit deadline but early enough for financial aid offices to reassess your package. Reaching out during this window increases your chances of securing a higher scholarship while demonstrating professionalism and genuine interest in the school.

Federal vs Private Loans for Law School

Students wanting to apply to law school should consider the differences between federal and private student loans. Federal loans come with certain benefits not guaranteed by private ones (such as forbearance or income-driven repayment), and should be used first before seeking private student loans.

Pros and Cons of Federal Student Loans for Law School

Federal student loans offer law students predictable interest rates, flexible repayment plans, and access to protections like income-driven repayment and Public Service Loan Forgiveness. While these benefits make them a reliable option, federal loans also come with borrowing limits, potentially higher interest rates than some private loans, and long-term costs that can add up over time.

Pros:

• Fixed interest rates

• Access to income-driven repayment plans

• Eligibility for Public Service Loan Forgiveness

• Deferment and forbearance options for financial hardship

Cons:

• Potentially higher interest rates than qualified private loans

• Borrowing limits may require supplemental financing

• Interest accrues while in school for most loans

• Longer repayment terms can increase total costs

When to Consider Private Student Loans

Private student loans may be worth considering when you’ve exhausted all federal financial aid options, including federal loans, grants, and work-study. They can help bridge funding gaps when federal loan limits fall short of covering the full cost of attendance, especially at higher-cost law programs.

Private lenders often offer competitive interest rates, which can make them appealing for students with strong credit or a creditworthy cosigner.

It’s important to note that private student loans don’t offer the same benefits and protections afforded to federal student loan borrowers, like Public Service Loan Forgiveness (PSLF). If a law school applicant is interested eventually in becoming a public defender or pursuing non-profit legal work, forgiveness and forbearance perks may play a role in their decision.

The Takeaway

Students looking to offset law school costs with scholarships can look to their law school, scholarship databases, local law firms, and other organizations for resources. Consider contacting the financial aid office at your law school if you are looking for scholarship resources. If students interested in law school find themselves coming up short on funds for the JD after scholarships and federal aid, additional options may be available.

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

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

FAQ

What LSAT score will get me a scholarship?

One general rule of thumb is that students who have an LSAT score (and sometimes GPA) above the median for a certain school could qualify for a scholarship. Chances of qualifying are even greater if your score falls in the 75th percentile for the school.

What is a good scholarship for law school?

Any scholarship for law school is a good scholarship. Scholarships typically don’t need to be repaid and can help reduce a student’s debt burden. Students looking for law school scholarships can apply for institutional aid and aid through other sources like nonprofit organizations.

Do top law schools give scholarships?

While some top law schools do not offer scholarships, many law schools do offer law school scholarships to students. For example, in the 2024-2025 class at Yale, 67% of students qualified for some form of financial aid and 62% qualified for an institutional law school scholarship. Check directly with the schools you are interested in to see if they offer scholarships to students.

Can you negotiate a better law school scholarship offer?

Yes, you can often negotiate a better law school scholarship offer. Many schools allow applicants to present competing offers from other institutions to request additional funding. Success depends on factors like your LSAT score, GPA, and the school’s enrollment goals, but respectful, well-documented negotiations can lead to increased aid.

Are law school scholarships renewable each year?

Many law school scholarships are renewable each year, but they often come with conditions. Students typically must maintain a minimum GPA or class ranking to keep their award. Renewal policies vary by school, so it’s important to review requirements carefully to avoid losing funding after the first year.

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

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

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SOISL-Q425-045

Dec

2025

Scholarships for Students With Disabilities

By Kevin Brouillard | Going to College, Student Loans, student_loan | Comments Off

Table of Contents

What Is a Disability Scholarship?
Eligibility Requirements for Disability Scholarships
Types of Disabilities Covered by Scholarships
American Association on Health and Disability Scholarship
10 Scholarships for Students With Disabilities
How to Apply for Disability Scholarships
Can I Apply for Scholarships for Disabled Students if I Have a Learning Disability?
The Takeaway

Scholarships are free money to help cover the cost of going to college, and they don’t need to be paid back like student loans. There are many scholarships and other forms of financial assistance that can help students with disabilities pay for college.

Below, we’ve outlined a list of disability scholarships, including their eligibility requirements and tips for applying.

Key Points

• Disability scholarships are tailored specifically for students with documented disabilities and can cover tuition, support services, housing, and other school-related expenses.

• These awards come from nonprofit organizations, foundations, private companies, and disability-advocacy groups, expanding funding beyond traditional merit- or need-based aid.

• Some scholarships are open to all students with disabilities, while others target particular conditions (e.g. learning disabilities, visual impairment, etc.), allowing many students to find a suitable match.

• Because disability scholarships may also cover support services (like accommodations, assistive technology, or therapy), they help address unique needs that standard financial aid might not cover.

• If scholarships aren’t enough to cover the cost of college, students with disabilities can rely on grants, federal student loans, and private student loans.

What Is a Disability Scholarship?

A disability scholarship is a form of financial aid that’s intended specifically for students with a disability. Scholarships for students with disabilities may be used to cover the cost of support services in addition to tuition and room and board.

Scholarships and grants for college are a type of financial aid that you don’t need to pay back, making them a helpful resource to pay for college and school-related expenses.

Eligibility Requirements for Disability Scholarships

It’s important to review the eligibility requirements before applying for a scholarship or grant. Some scholarships may be open to all students with a documented disability, while others are reserved for applicants with certain types of physical, learning, or emotional disabilities.

Types of Disabilities Covered by Scholarships

Types of scholarships for students with disabilities cover a wide range of conditions, helping ensure that financial support is accessible to many learners with diverse needs. While some programs are broad and open to any documented disability, others are tailored to specific physical, cognitive, or sensory conditions.

Common disability categories include:

• Physical disabilities (mobility impairments, chronic illnesses)

• Visual impairments or blindness

• Hearing impairments or deafness

• Learning disabilities (such as dyslexia or ADHD)

• Autism spectrum disorders

• Mental health conditions

• Intellectual and developmental disabilities

American Association on Health and Disability Scholarship

One notable scholarship for students with disabilities is the Frederick J. Krause Scholarship, which is funded by the American Association on Health and Disability. It provides multiple awards of $1,000 to students with a disability who are pursuing an undergraduate or graduate degree in a field related to disability and health.

To be eligible to apply, students must have completed at least one full year of college or be enrolled in a graduate degree program.

10 Scholarships for Students With Disabilities

In addition to the scholarship mentioned above, there are many other scholarships for students with disabilities to continue their education.

Scholarships can come from a variety of sources, including charitable foundations, nonprofit organizations, and private companies. Awards can be based on financial need, academic merit, or both.

There may be additional eligibility requirements, such as location or field of study. For instance, scholarships may be open to all levels of higher education or specific to students enrolled in undergraduate, graduate, or vocational programs.

Below is a list of 10 scholarships that are available exclusively to students with disabilities.

1. Microsoft Disability Scholarship

Scholarship amount: $5,000 in previous years; new amounts announced January 2026

Application deadline: October 1 in previous years; new deadlines announced January 2026

The Microsoft Disability Scholarship is awarded to current high school seniors with disabilities who plan to enroll in an accredited two- or four-year college or vocational/technical school in the U.S. Applicants must demonstrate leadership experience and a passion for technology, as well as be planning to pursue a degree in engineering, computer science, computer information systems, law, business, or a related field.

Recommended: Is a Computer Science Degree Worth It?

2. Anne Ford Scholarship

Scholarship amount: $10,000 ($2,500/year over four years)

Application deadline: April 20

The Anne Ford Scholarship, by the National Center for Learning Disabilities, gives a $10,000 award to a graduating high school senior with a documented learning disability. To be eligible, students must be planning to enroll in a full-time bachelor’s degree program.

3. Allegra Ford Thomas Scholarship

Scholarship amount: $5,000 ($2,500/year over two years)

Application deadline: April 21

The Allegra Ford Thomas Scholarship, also offered by the National Center for Learning Disabilities, awards one scholarship to a graduating high school senior who will enroll in a two-year community college, a vocational or technical training program, or a specialized program for students with disabilities. To apply, students must have a documented learning disability.

4. John Lepping Memorial Scholarship

Scholarship amount: Up to $5,000

Application deadline: May 1

The John Lepping Memorial Scholarship provides awards to support disabled youth in New York, New Jersey, and Pennsylvania in attending college. Recipients must be able to provide proof of a physical or psychological disability with a letter of confirmation by a physician.

5. Musicians With Disabilities Scholarship

Scholarship amount: $1,500

Application deadline: March 13

Sigma Alpha Iota offers the Musicians With Disabilities Scholarship of $1,500 to a member of the international music fraternity with a qualifying disability. Applicants must be enrolled in an undergraduate or graduate degree program in music, or studying to become a teacher or therapist in this field.

6. American Council of the Blind’s Scholarship Program

Scholarship amount: Up to $7,500

Application deadline: February 14

The American Council of the Blind’s Scholarship Program provides educational scholarships between $2,000 and $7,500 for incoming freshman, undergraduate students, graduate students, and students attending technical college. To be eligible, applicants must be legally blind, maintain a 3.0 GPA or higher, and either study full-time or be a part-time student who works at least 32 hours per week.

7. Wells Fargo Stacey Milbern Scholarship

Scholarship amount: $1,250-$2,500

Application deadline: Not yet released

The Wells Fargo Stacey Milbern Scholarship provides awards to help students with disabilities pursue education at a two- or four-year college on a full-time or part-time basis. Scholarships are renewable, and full-time students are eligible for a $2,500 annual award, while part-time students are eligible for a $1,250 annual award.

Recommended: Ultimate College Application Checklist

8. Marion Huber Learning Through Listening Awards

Scholarship amount: $2,000-$6,000

Application deadline: December 31

The Marion Huber Learning Through Listening® Award grants multiple scholarships to high school seniors with a learning disability who are planning to study at a two- or four-year college or vocational school. Applicants must be an active Learning Ally member and graduating from a high school in the U.S. to be eligible.

9. Yellow Ribbon Scholarship

Scholarship amount: $5,000

Application deadline: April 30

The American Bus Association offers a Tony Orlando Yellow Ribbon Scholarship to undergraduate, graduate, and training school students who have a declared major or course of study relevant to transportation, travel, or tourism. Students with a physical or sensory disability, veterans, and children of a wounded military veteran are eligible to apply. Applicants must also have a cumulative GPA of 3.0 or higher.

10. Simmons and Fletcher, P.C., Students With Disabilities Scholarship

Scholarship amount: $500-$1,000

Application deadline: December 1

The Simmons and Fletcher, P.C., Students With Disabilities Scholarship is awarded to two students with disabilities based on an essay competition, with the winner receiving a $1,000 award and second place receiving a $500 award. To apply, students must be completing their first semester of college and continuing their studies.

Bonus Scholarship: SoFi’s Scholarship Sweepstakes

For a chance to win SoFi’s monthly $2,500 Scholarship Sweepstakes, simply let us know your name, email address, and school.

How to Apply for Disability Scholarships

Application requirements vary by scholarship opportunity, so it’s recommended to plan ahead. Taking note of submission deadlines can help prioritize which scholarships to apply for and ensure you stay on track for preparing and submitting materials.

Often, students have to write a personal statement or submit an essay as part of the application. It’s important to pay attention to the instructions, including prompts, word limits, and other criteria used to select scholarship recipients.

Submitting school transcripts and a letter of recommendation are two other common requirements. Think about who can best attest to your strengths and achievements when selecting a reference.

Keep in mind that some scholarships require that recipients submit documentation of their disability to accept the award.

Can I Apply for Scholarships for Disabled Students if I Have a Learning Disability?

Yes, if you have a learning disability, you can apply for scholarships for disabled students. Many scholarships are geared toward students with one or more disabilities, including physical and learning disabilities. For some scholarships, having a learning disability is an eligibility requirement.

Recommended: SoFi’s Scholarship Search Tool

The Takeaway

There are many scholarships that are specifically designated for students with disabilities. Scholarships and grants are a useful way for students with disabilities to pay for college and reduce student loan debt.

Many students use multiple funding sources, including federal student loans and private student loans, to help 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

What types of scholarships are available for students with disabilities?

There are many scholarships for students with disabilities, including those based on specific disabilities, academic achievements, or financial need. Some scholarships are offered by disability advocacy organizations, while others are provided by colleges, nonprofits, or government programs to support educational success and accessibility for disabled students.

How can students with disabilities find scholarships?

Students with disabilities can find scholarships by researching online databases, consulting with school counselors, or reaching out to disability advocacy organizations. Websites like Disability.gov or the National Center for Learning Disabilities also offer scholarship listings tailored to specific needs.

What qualifies as a disability for scholarships?

A disability for scholarship purposes generally includes any documented physical, sensory, cognitive, mental health, or learning condition that substantially limits one or more major life activities. Eligibility typically requires medical or psychological documentation, and programs may define additional criteria depending on whether they target broad disabilities or specific conditions.

Do students with disabilities need to provide documentation when applying for scholarships?

Yes, most scholarships for students with disabilities require documentation of the disability. This might include a letter from a medical professional or educational accommodations documentation. Additionally, other materials like transcripts, essays, and recommendations may be required, depending on the scholarship’s criteria.

Can I apply for multiple disability scholarships at once?

Yes, you can apply for multiple disability scholarships at the same time, and doing so can increase your chances of receiving funding. Each scholarship has its own eligibility rules and application requirements, so be sure to review deadlines, prepare documentation, and tailor your materials to meet each program’s expectations.

Photo credit: iStock/SeventyFour

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.

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.

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

SOISL-Q425-048

Dec

2025

A smiling young woman with a high bun and glasses types on a laptop at a sunny table with books, perhaps researching scholarships for women.

10 Popular Scholarships for Women

By Sarah Li Cain | Going to College, Student Loans, student_loan | Comments Off

Scholarships are free money that can help fund an undergraduate or graduate degree. There are plenty of scholarships for women, including some with a purpose to encourage more females to pursue careers where they’re considered underrepresented, as well as scholarships to help them attend college.

Spending some time researching and applying for scholarships you may be eligible to receive could help you pay for college tuition. Keep reading to learn more on 12 top scholarships for women to help pay for college.

Table of Contents

What Types of Scholarships Are There for Women?
Are There Scholarships for Women in STEM?
Popular Scholarships For Women

Key Points

• Scholarships for women can be need-based or merit-based, with some targeting underrepresented fields like STEM, business, and aerospace.

• Examples include AAUW Selected Professions Fellowships ($20,000) and Women in Aerospace Foundation ($5,000).

• Specialized opportunities exist for groups such as Native American students (AIS Scholarship: $500-$2,000), Chicana/Latina students ($1,500), and nursing students (ANNA scholarships: $1,000–$3,000).

• Many scholarships also support women pursuing graduate degrees or career mobility, including accounting and statistics-focused awards.

• Deadlines and eligibility vary widely — early research and preparation are key, as many opportunities go unclaimed due to lack of applications.

What Types of Scholarships Are There for Women?

There are plenty of scholarships available for women, including scholarships for undergraduate students and scholarships for graduate students.

Scholarships may be need-based or merit-based awards. Each one will have specific qualifying and application requirements. Scholarships, essentially, can be like finding free money for college.

Some scholarships may also be location-based, such as those for residents of certain states or for specific schools. There are even some unclaimed scholarships you may be eligible for.

You can use SoFi’s scholarship finder to find and apply for scholarships you qualify for.

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

Need-Based vs. Merit-Based Scholarships

Need-based scholarships for women are awarded primarily based on financial need. They’re designed to support applicants whose household income, life circumstances, or financial barriers make paying for education challenging. These scholarships often require documents like tax returns or FAFSA information to show that the applicant genuinely needs financial assistance to pursue her goals.

Merit-based scholarships, on the other hand, focus on achievements rather than financial background. They reward academic excellence, leadership, community involvement, or exceptional talent in areas such as STEM, arts, or athletics. Rather than evaluating income, these scholarships assess accomplishments, grades, or demonstrated potential, making them accessible to women who have excelled in their chosen paths.

Scholarships for Women Returning to School

Scholarships for women returning to school are a type of scholarship designed to help ease the financial burden many face when re-entering higher education after time away. These awards recognize that women often step out of school for reasons like caregiving, career shifts, or financial challenges, and they aim to make the transition back more accessible and affordable. Many of these scholarships consider factors such as financial need, life circumstances, or the desire to advance in a new career path.

Three examples of scholarships for women returning to school include P.E.O. Program for Continuing Education (PCE), Society of Women Engineers (SWE) Reentry Scholarships, and the Jeannette Rankin Foundation Scholarship.

Are There Scholarships for Women in STEM?

There are many scholarships for women who are pursuing careers in science, technology, engineering, and math (STEM). According to the U.S. Equal Employment Opportunity Commission, 29% of all STEM workers are women, with math, engineering, and computer-related jobs being the least represented.

Government organizations, industry associations, and even technology companies offer industry-specific scholarships (we’ll talk more about some of them below). For instance, companies like Google or associations such as the Society for Women Engineers (SWE) offer scholarships for women.

Fields Commonly Supported by STEM Scholarships

STEM scholarships commonly support fields that drive innovation and require strong technical skills, such as engineering, computer science, and the physical and biological sciences. Many programs also fund studies in mathematics, technology, and emerging areas like cybersecurity, data science, and renewable energy. These fields are often prioritized because they face workforce shortages and play a critical role in economic growth and scientific advancement.

Organizations That Support Women in STEM

Many organizations exist to support women pursuing careers in STEM by providing scholarships, mentorship, networking opportunities, and professional development. Five specific organizations include:

• Society of Women Engineers (SWE): Provides scholarships, networking, mentorship, and professional development to women in engineering and technology.

• AnitaB.org: Focuses on advancing women in computing through conferences (like the Grace Hopper Celebration), research, and organizational programs.

• Association for Women in Science (AWIS): Advocates for women across all STEM disciplines by offering mentorship, career resources, and policy engagement.

• National Center for Women & Information Technology (NCWIT): Works to increase women’s participation in computing through education programs, research, and community-building initiatives.

• Girls Who Code: Offers after-school clubs, summer programs, and resources to close the gender gap in technology by equipping young women with coding skills.

Recommended: Scholarships for STEM Students

Popular Scholarships For Women

Below are 12 scholarships available to women that could help you avoid taking on too much student loan debt:

Pepperdine Legacy Partners (PLP) Helen Young Scholarship

Scholarship amount: $5,000

Application deadline: February 15

The Pepperdine Legacy Partners (PLP) Helen Young Scholarship is formerly known as the Associated Women for Pepperdine (AWP) Scholarship. It is one of the largest women’s groups awarding scholarships for female Christian students (though, men can receive this scholarship, too). There are several awards up for grabs, and scholarships can be renewed.

To qualify, applicants need to be students at Pepperdine University, current and active members of the Church of Christ, submit a letter of recommendation from a leader of the Church of Christ, and fill out the Free Application for Federal Student Aid (FAFSA®) application.

Gertrude M. Cox Scholarship

Scholarship amount: $1,000

Application deadline: March 1

The Cox Scholarship aims to encourage women to pursue professions related to the statistics field. There are two scholarships, one for a female early on in their graduate career, and the other for a woman at a more advanced level. Applicants need to be permanent residents or citizens in the U.S. or Canada and be admitted to a full-time graduate statistics program of the year the scholarship is awarded.

Jeannette Rankin Women’s Scholarship Fund

Scholarship amount: Up to $2,500

Application deadline: February 13

This scholarship is for women age 35 or older who are considered low-income and enrolling into a not-for-profit accredited educational institution. Women can pursue an associate’s or bachelor’s degree, or technical or vocational education. To apply, applicants need to demonstrate financial need and answer questions based on their academic and career goals.

American Association of University Women (AAUW) Selected Professions Fellowships

Scholarship amount: $20,000

Application deadline: October

The AAUW awards multiple scholarships, and the Selected Professions Fellowships is one of them.

Women may apply if they intend on pursuing full-time studies at an accredited U.S. institution in a field where women have had historically low enrollment. For instance, scholarships are awarded for women pursuing degrees in STEM and engineering.

Eligibility criteria include women who can prove they have shown promise of high academic excellence and distinction.

American Indian Services (AIS) Scholarship

Scholarship amount: $500-$2,000

Application deadline: July 1 to November 1 (depending on when the applicant’s classes start)

The AIS Scholarship aims to help Native American students enrolling in an accredited institution pursue higher education. Awards are given on a quarterly basis, though you’ll only need to apply once per year.

Eligibility requirements include being at least one-quarter of an enrolled member, or descendant of an enrolled member of a U.S. Federally Recognized Native American Tribe, enrolled at least half-time, and completed the FAFSA. This award is currently only available to undergraduate students.

Educational Foundation for Women in Accounting Scholarships

Scholarship amount: $1,500-$5,000

Application deadline: Varies (most end April 30)

The Educational Foundation for Women in Accounting offers multiple scholarship opportunities for women pursuing undergraduate, graduate, or postgraduate degrees in accounting. Applicants may apply to more than one scholarship excluding the Women in Transition and Women in Need awards, of which students can only apply to one.

Eligibility criteria varies, though most will require applicants to provide transcripts, demonstrate financial need, and prove they’re committed to working in the accounting field.

Patsy Takemoto Mink Education Foundation Scholarship

Scholarship amount: $5,000

Application deadline: New information released May 2026

The Patsy Takemoto Mink Education Foundation Scholarship provides financial support to low-income women of color who are pursuing education or vocational training to improve their career prospects. Named after Congresswoman Patsy Takemoto Mink, the scholarship aims to help women overcome economic barriers and gain skills for long-term self-sufficiency.

Applicants must demonstrate financial need, academic potential, and a commitment to completing their educational or training programs, making it an important resource for women seeking to advance their careers and achieve personal and professional growth.

American Nephrology Nurses Association Career Mobility Scholarships

Scholarship amount: $1,000 to $3,000

Application deadline: November

The American Nephrology Nurses Association, or ANNA, offers Career Mobility Scholarships ranging from $1,000 to $3,000 designed to support qualifying members who are pursuing an advanced or BSN degree in nursing. Qualifying criteria includes being a current full ANNA member for at least one year, enrolled or accepted into a qualifying nursing program, and a 250-word essay outlining the potential impact of the scholarship.

Chicana Latina Foundation Scholarships

Scholarship amount: $1,500

Application deadline: Next application cycle will open on January 1

Self-identifying Chicana or Latina college students living in qualifying California counties can apply for a $1,500 scholarship. They need to be students attending an accredited community college, college, or university full-time and meet certain academic requirements. Plus, they’ll need to attend the Chicana Latina Foundation (CLF) Leadership Institute and CLF Annual Awards Dinner if selected for a scholarship.

To apply for this scholarship, applicants will be required to submit one letter of recommendation from a counselor/professor or community member.

Undergraduate students need to submit unofficial or official transcripts from their current degrees and one letter of recommendation. Graduate students will also need to submit a resume or CV in addition to providing a transcript and letter of recommendation.

💡 Quick Tip: Master’s degree or graduate certificate? Private or federal student loans can smooth the path to either goal.

The Women In Aerospace Foundation Scholarship

Scholarship amount: $5,000

Application deadline: June

The Women In Aerospace Foundation aims to promote careers in the aerospace field — this scholarship program is one of the ways it does so. The organization awards four $5,000 awards to women who are rising juniors and seniors working for a bachelor’s degree in engineering, math, or science.

To qualify, applicants need to be currently enrolled in an accredited U.S. college or university, plan to enroll the next academic year, and complete a minimum of 2.5 academic years of full-time college. Applicants also need to have a minimum of a 3.0 GPA.

P.E.O. Program for Continuing Education

Scholarship amount: Up to $4,000

Application deadline: 30 days from when a local P.E.O. chapter recommends you

The P.E.O. Program for Continuing Education (PCE) is a need-based grant up to $4,000 to support women in the U.S. and Canada whose education has been interrupted and who wish to return to school to complete a degree or certification that will improve their employability.

To be eligible, women must be recommended by a local P.E.O. chapter, be U.S. or Canadian citizens or permanent residents, have had at least 24 consecutive months as a non-student, and be enrolled in an accredited program that leads to employment or advancement. They must also be within 18 consecutive months of completing their program, and they cannot already hold a master’s degree or be enrolled in a doctoral program.

Recommended: Grants for College

Society of Women Engineers Scholarship

Scholarship amount: $1,000-$5,000

Application deadline: Emerging First Year Scholars – February 2, 2026; Collegiate/Graduate Scholars – March 31, 2026; India Scholars – March 31, 2026

The Society of Women Engineers (SWE) Scholarship program offers robust financial support to women pursuing undergraduate or graduate degrees in engineering, engineering technology, or computing at ABET-accredited schools. Award amounts typically range from $1,000 to $5,000, though some awards may be higher depending on donor funding.

To apply, candidates submit an application with their transcripts, a personal essay, and a letter of recommendation. One application allows you to apply for all scholarships you’re eligible for, including Emerging First Year Scholars, Collegiate/Graduate Scholars, and India Scholars.

The Takeaway

Applying for one of the many scholarships for women can be a smart tactic if you’re trying to figure out how to pay for your college education. In addition to the scholarships listed here, there are a variety of other opportunities — many scholarships go unclaimed because they don’t receive enough applications. It doesn’t hurt to submit an application since the worst they’ll say is “no,” and the benefits are well worth it.

There are other ways to help cover the cost of college as well, and you’ll likely want to explore your options to see what makes the most sense for your situation.

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

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

FAQ

Are there scholarships specifically for women over 30?

Yes, there are scholarships specifically for women over 30. Organizations like the American Association of University Women (AAUW) and the Jeannette Rankin Foundation (JRF) offer financial aid to support women returning to education or pursuing career advancement. Check their websites for eligibility and application details.

Can women in trade schools apply for scholarships?

Yes. Women in trade schools can apply for many scholarships specifically created to support women pursuing skilled trades. These scholarships are offered by trade associations, nonprofits, unions, and private organizations to help cover tuition, tools, exams, and training costs, encouraging more women to enter high-demand technical fields.

Are there scholarships for women of color?

Yes, there are scholarships for women of color. Organizations like the United Negro College Fund, Hispanic Scholarship Fund, and Asian & Pacific Islander American Scholarship Fund offer financial aid to support diverse students. Additionally, many universities and professional groups have specific programs for women of color.

How competitive are scholarships for women in STEM fields?

Scholarships for women in STEM fields are highly competitive due to the growing emphasis on diversity and inclusion. Many organizations, such as the Society of Women Engineers and the National Science Foundation, offer these scholarships, but the number of applicants often exceeds the available awards. Strong academic performance, relevant experience, and compelling essays are crucial.

What documents are typically required to apply for women’s scholarships?

Most women’s scholarship applications require proof of identity, transcripts, letters of recommendation, and a personal essay. Many also ask for financial information, a resume, and documentation showing eligibility, such as enrollment verification, income details, or proof of belonging to a specific group, field, or demographic the scholarship supports.

Photo credit: iStock/valentinrussanov

SOSLR-Q425-047

Dec

2025

Does an MBA Degree Increase Your Salary?

By Pam O’Brien | Going to College, Money & Life, Student Loans, student_loan | Comments Off

Earning an MBA, or a Masters of Business Administration, degree can increase your salary, teach you specialized skills, and provide you with new career opportunities. But getting your MBA is expensive, with an average cost of $62,600 for a two-year program versus $51,740 for a master’s degree in general at a public school. A degree from a top-tier school can be considerably more, with tuition and living expenses totaling $200,000 for the program.

Just how big of an MBA pay increase you’ll get in return depends on a number of factors, including the school you attend, the field you’re in, and your previous work experience. Here’s what to know about an MBA salary increase and how much you might expect to receive.

Table of Contents

Value of an MBA Degree
Average Salary Increase with an MBA
Factors Influencing MBA Salary Potential
Choosing the Right MBA Program
How to Pay for Your MBA
The Takeaway

Key Points

• MBA graduates may earn 70% more than those with a bachelor’s degree.

• The median starting salary for MBA grads may range from $85,000 to $120,000, which is much higher than the average for bachelor’s degree holders.

• The salary boost from an MBA varies significantly by industry — graduates in finance, technology, consulting, health care, legal, and manufacturing tend to earn very different post-MBA pay.

• Your MBA salary potential is strongly influenced by the prestige of your school, your previous work experience, and how specialized your MBA program is.

• Ways to pay for your MBA include student loans, grants, scholarships, and tuition reimbursement. You can also refinance your undergrad loans to possibly lower your payment.

Value of an MBA Degree

An MBA degree can make you more marketable to employers, which can in turn help you land a better job and a higher salary, research shows. And while earning your degree can come with a hefty price tag, taking out MBA loans is one option to help you pay for it.

The median starting salary of recent MBA graduates in the U.S. ranges from $85,000 to $120,000. That’s significantly more than the $68,680 starting salary of grads with a bachelor’s degree. Knowing how much you might earn could help you determine if an MBA is worth it.

An MBA can also help you advance in your career. MBA grads typically perform better and move up the ladder faster than other employees. That places them in high demand in the workplace, and 37% of employers plan to hire more MBA graduates in 2025 (up from 17%).

Average Salary Increase with an MBA

MBA graduates may earn up to 70% more than those with just a bachelor’s degree, assuming an entry level salary of $120,000 for MBA grads and $70,000 for those with a bachelor’s degree.

However, the amount your salary might increase once you have an MBA depends on the field you’re in. Here’s a closer look.

Salary By Industry and Job Function

The following industries tend to pay well for those who have earned an MBA, making them some of the best jobs for MBA graduates.

Industry	Median Annual Salary
Finance	$175,000
Technology	$162,750
Consulting	$190,000
Health Care	$163,000
Legal	$225,000
Manufacturing	$165,000
Entrepreneurship & Startups	$151,200

Finance

Many MBA grads pursue a career in finance, and it can be lucrative. The average salary for an individual with an MBA in finance is $175,000, but the amount can be more than $250,000 annually depending on your position.

Technology

Another hot field for those with an MBA is technology, especially as AI becomes more prevalent. The average salary for MBA grads in tech is $162,750 a year. However, your MBA salary increase could run higher still and may even include a signing bonus.

Consulting

Those who work as consultants and have their MBA average about $190,000 annually, but a consultant’s salary may go up dramatically within a few years, especially if they work at a big firm.

Health Care

Health care management is a popular job for MBA graduates. The average earnings are $163,000 per year. Top earners can make over $200,000 per year, but those with less experience may make less than a six figure salary.

Legal

MBA graduates working in the legal field earn a median annual salary of about $225,000. Job title matters, though, with those working as general counselors earning more than as general attorneys.

Manufacturing

MBA graduates in the manufacturing field earn a median annual salary of $165,000, demonstrating the industry’s strong demand for leaders with advanced operational and strategic expertise. Job titles include industrial production manager, purchasing manager, general manager, and senior operations leader.

Entrepreneurship and Startups

MBA graduates in the entrepreneurship and startups field earn a median annual salary of $151,200. However, this can vary substantially. Those just starting out typically earn much less, whereas the income potential for successful business owners could be unlimited.

Factors Influencing MBA Salary Potential

In addition to the field you choose to work in, how much you’ll earn after getting your degree is influenced by such things as the MBA program you choose and your previous work history and salary.

These are the five major factors that can affect MBA salary potential.

School Reputation and Rankings

Although it’s likely to be pricier, going to a top-rated school to get your MBA can pay off in multiple ways. These schools tend to have robust networking programs and employer recruitment opportunities. Some colleges may help prospective graduates find internships and jobs. Also, grads from top 10 schools tend to earn more than those who attend other programs.

Before applying to an MBA program, do your research to see where recent alumni have ended up and which companies have recruitment relationships with the school. For instance, certain coveted employers might always attend a particular school’s job fairs. If a university has connections to companies you might be interested in working at, you may want to apply to their MBA program.

Recommended: Why Accredited MBAs Are Important

Specialization and Concentration

Every MBA program offers different classes, internships, and hands-on opportunities, and it’s important to look for ones tailored to your goals and career path. Choose a program with specialized concentrations in the field you’re most interested in. For instance, some MBA programs specialize in health care while others focus on finance.

If you’re currently in a field that you want to pivot out of — moving from marketing to consulting, say — an MBA could help with career change without going back to an entry-level job.

Work Experience and Performance

The more work experience you have, the more likely you are to score a higher salary once you get an MBA. This is especially true if that experience is relevant to the area of study you’re pursuing. Most people going for their MBA have about five years of experience on the job. And some MBA programs require students to have a certain number of years of work experience before they apply.

Networking Opportunities and Alumni Connections

Strong networking opportunities and access to a well-established alumni network can significantly influence your MBA salary potential. Business schools with active alumni communities provide valuable connections to hiring managers, industry leaders, and recruiters, often opening doors to high-paying roles that might not be publicly advertised. These networks can also offer mentorship, referrals, and insider knowledge that help you strategically position yourself in competitive job markets.

Internship and Recruiting Access

Many top business schools have strong relationships with leading employers who actively recruit MBA students for high-paying internships that often lead to full-time job offers. These internships provide crucial hands-on experience, skill development, and exposure to different industries, all of which enhance your marketability.

Recommended: MBA Refinancing

Choosing the Right MBA Program

It’s important to find an MBA program that fits your interests and goals. Look for programs that offer concentrations in the areas and fields you want to pursue. Then review the curriculum and the courses offered to make sure they appeal to you.

In addition, learn where graduates of the MBA program have ended up. What companies do they work for and what kinds of jobs do they have? You might even reach out to ask how they felt about the program and if they would recommend it.

Location

Where the school is located is also a prime consideration. If you’re working and going to school at the same time, you’ll need to find a program in your area. You could also explore top online MBA programs if you want to take advantage of a particular school’s offerings when you’re unable to attend it in person. These programs tend to cost less than in-person ones, but you may miss out on networking opportunities.

If you’re a full-time student and you have the opportunity to move to attend school, you could choose an MBA program near the area where you hope to work. For instance, if you’d like to be employed in Silicon Valley, a school nearby might be a good choice for you. It may be easier to get an internship there as well as a job after graduation.

Cost

Of course, the cost of an MBA program is likely to be one of the most important factors in your decision. Beyond the tuition, find out the true cost of getting an MBA at any school you’re interested in. This includes living expenses, books, transportation, and so on.

Delivery Format (Online vs On-Campus vs Executive MBA)

In addition to location and cost, you need to consider how you want to learn the information. Some people learn best in a classroom environment where they can ask questions and interact with classmates face-to-face. Others prefer online learning where they can go at their own pace and learn the information on their own time.

Executive MBAs (EMBAs) are typically part-time and hybrid, with a mix of online classes, in-person modules, and intensive residential sessions. Most students can still work full-time while pursuing an EMBA.

How to Pay for Your MBA

There are a number of ways to pay for your MBA, such as student loans, scholarships, grants, employer sponsorships, and more.

Student Loans

You may want to consider both federal and private student loans. Federal loans include Direct PLUS Loans for graduate students from the Education Department. However, those are being eliminated for new borrowers on July 1, 2026.

Borrowers will have to rely on Direct Unsubsidized Loans moving forward. Starting July 1, 2026, borrowing is capped at $20,500 for graduate students, with a lifetime aggregate limit of $100,000.

Students can also rely on private student loans. Private graduate loans may have fixed or variable rates, and are offered by banks, credit unions, and online lenders. Be aware, though, that with private student loans, you will not have access to the same federal protections and programs you would with federal loans, including income-driven repayment plans.

Scholarships, Grants, and Fellowships for MBA Students

Scholarships, grants, and fellowships are some of the most valuable funding sources for MBA students because they do not need to be repaid. Many business schools offer merit-based awards to applicants who demonstrate academic excellence, leadership potential, or significant professional achievement. These programs can cover anywhere from a portion of tuition to the full cost of attendance, making them highly competitive but extremely worthwhile.

Employer Sponsorships and Tuition Reimbursement

Employer sponsorships and tuition reimbursement programs can be ideal for professionals who plan to keep working while pursuing their degree. Many companies provide partial or full tuition coverage as part of their employee development initiatives, seeing it as an investment in building stronger leaders and more skilled teams. For working students, this support can make an MBA far more affordable without taking on significant debt.

However, employer-assisted education typically comes with conditions that are important to understand upfront. Many employers require a commitment to stay with the company for a certain period after graduation, and leaving early may result in repaying some or all of the funds.

It’s best to ask your employer what they cover and what the expected commitment is from you prior to making a decision.

Recommended: Average Salary by State

The Takeaway

Earning an MBA may help you fulfill your career dreams and earn a higher salary. The degree could increase your salary by as much as 70%, depending on such variables as the school you attend and the field you work in. But getting an MBA can be costly, averaging more than $60,000 for a two-year program, and up to $200,000 for top-tier schools.

If you decide that earning an MBA makes sense for you, there are ways to help cover the costs and develop a solid budget. You can explore all options, including scholarships, grants, and federal and private student loans, as well as refinancing your existing loans.

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

What is the average starting salary with an MBA?

The median starting salary with an MBA ranges from $85,000 to $120,000. That’s far higher than the $68,680 starting salary of graduates with a bachelor’s degree.

Is an online MBA worth the investment?

Online programs offer greater flexibility and are typically less expensive than in-school programs. However, with an online program, you may not have access to all possible networking opportunities or the opportunity to speak with professors face to face. You may also feel less connected to the school and the overall experience.

How long does it take to recoup MBA program costs?

How long it takes to recoup MBA program costs is different for everyone, depending on the price of the program and the salary increase they enjoy after earning their degree. In general, though, it takes grads of two-year full-time MBA programs about three and a half years of working to recoup the cost. Those who enroll in online MBA programs recoup the cost in about two and a half years of work.

What factors most affect post-MBA salary?

Post-MBA salary is most affected by factors such as the reputation of the business school, the student’s pre-MBA work experience, the chosen concentration or specialization, and the industry and location of employment. Networking opportunities and internships during the program also play a significant role.

Do all MBA programs lead to higher salaries?

Not all MBA programs guarantee higher salaries. The impact on earnings depends on the program’s reputation, the student’s pre-MBA experience, the chosen specialization, and the job market. Top-tier programs and relevant industry experience often lead to better job opportunities and higher salaries.

Photo credit: iStock/Xavier Lorenzo

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

SOSLR-Q324-023

Dec

2025

Are Student Loans Secured or Unsecured?

By Jennifer Calonia | Going to College, Student Loans, student_loan | Comments Off

Student loans are a type of financial aid option that lets you borrow a lump sum of money upfront that you’ll repay over time later, with interest. Some students are unclear whether a student loan is a secured or unsecured debt.

Both federal and private student loans are considered an unsecured form of debt. Keep reading to learn more on secured loans versus unsecured loans, pros and cons of each, and why student loans are considered an unsecured debt.

Table of Contents

What Are Secured Loans?
What Are Unsecured Loans?
Pros and Cons of Secured vs Unsecured Loans
How Federal Loans Differ From Typical Debt
Managing Your Student Loan Debt
The Takeaway

Key Points

• Student loans are unsecured debt, meaning you don’t need to provide any collateral like a home or car when borrowing.

• Secured loans are backed by assets, which reduces risk for the lender and can result in lower interest rates.

• Unsecured loans rely on creditworthiness, so lenders evaluate your income, credit history, and financial stability instead of collateral.

• Federal student loans have unique protections, including income-driven repayment plans and forgiveness options not typically available with other unsecured debt.

• Managing your unsecured student loan debt wisely — such as making in-school interest-only payments — can prevent interest capitalization and lower long-term costs.

What Are Secured Loans?

A secured loan is a type of debt that requires borrowers to provide the lender with an asset of value to back the loan. This asset is called collateral. Collateral could be your home, your car, other property that has monetary value, a savings account, jewelry, and more. The type of collateral you put up is stated in the loan agreement.

If a borrower defaults on their loan and doesn’t pay it back, the lender can take actions to seize possession of the collateral. It then uses the proceeds from the sale of the collateral to recover the unpaid debt.

Common Examples of Secured Debt

Common types of secured loans include:

• Mortgage loans

• Home equity loans

• Auto loans

• Some personal loans

Lenders typically view secured loans as less risky to their bottom line since the promised collateral offers them at least some financial protection. In turn, secured loans might offer lower interest rates compared to unsecured loans.

Certain secured loans are also designed as accessible financing for individuals whose credit doesn’t qualify for an unsecured loan.

What Are Unsecured Loans?

An unsecured loan is an installment loan that doesn’t require an asset or collateral upfront to secure the debt. Since this type of loan doesn’t offer an asset-based guarantee to the lender, the borrower must demonstrate a strong likelihood that they’ll repay the debt.

A positive and extensive credit history, consistent and sufficient income, and low credit utilization are some markers that lenders use to determine how risky a borrower is for an unsecured loan. Additionally, since lenders don’t have access to collateral to fall back on in the event of default, unsecured loans generally have higher interest rates.

Credit cards, some personal loans, and private student loans are considered unsecured loans.

Why Most Student Loans Are Unsecured

Most student loans are unsecured because lenders do not require collateral to provide the funds. This allows students without significant assets to access the funds needed for tuition, fees, and living expenses, making higher education more accessible to a broader population.

Federal student loans, in particular, are designed to be accessible and flexible, so they are always unsecured. The government assumes the risk of lending, providing protections like income-driven repayment and deferment options that wouldn’t be feasible if loans were tied to collateral. Private lenders also issue unsecured student loans to allow students to finance their education without requiring property or other assets, though interest rates and approval criteria may vary.

Pros and Cons of Secured vs Unsecured Loans

Secured and unsecured loans have their own advantages and downsides. Before signing a loan agreement, it’s important to understand the pros and cons of each option.

	Secured Loans	Unsecured Loans
Pros	More accessible for certain borrowers (higher approval odds) May offer lower interest rates Might qualify for larger loan amount Certain loans might qualify for tax deductions	No risk of lost collateral Application process might be more straightforward Might offer convenient features or perks Student loans might qualify for tax benefits
Cons	Collateral required upfront Risk losing collateral if you default	More stringent borrowing criteria Interest rates may be higher

Risk to Borrower and Lender

Secured loans are riskier to the borrower than to the lender. For borrowers, failing to make payments can result in the loss of the asset used as security, potentially causing financial hardship. For lenders, collateral reduces the risk of total loss, since they can repossess or sell the asset to recover funds if the borrower defaults. This security often allows lenders to offer lower interest rates compared with unsecured loans.

Unsecured loans, including student loans, pose different risks for both parties. Borrowers face the consequences of default through damaged credit scores, collections, and potential legal action, but they do not risk losing specific assets. Lenders, however, bear a higher risk since there is no collateral to recover if a borrower fails to repay. To offset this increased risk, unsecured loans often carry higher interest rates, stricter approval requirements, or reliance on cosigners to ensure repayment.

Interest Rate Differences

Interest rates for secured and unsecured loans differ primarily due to the level of risk each type of loan poses to the lender. Secured loans are backed by collateral, which reduces the lender’s risk and often results in lower interest rates.

When it comes to student loans, federal student loans often have lower interest rates than private unsecured loans because they’re backed by the federal government, which reduces lender risk.

However, secured loans (like auto or mortgage loans) still tend to have even lower interest rates overall because they’re backed by collateral. So federal student loans fall in between: lower than many unsecured loans, but typically higher than secured loans.

How Federal Loans Differ From Typical Debt

Both federal loans and private education loans are unsecured debt. However, federal loans have significant perks and protections that private student loans don’t offer.

Unlike private student loans that require a minimum credit score or cosigner, most federal student loans don’t require a credit check or a cosigner to qualify for a loan. The Direct PLUS Loan is the only federal loan that requires a credit check, but borrowers with adverse credit can still access a Direct PLUS Loan by completing a few additional steps.

Federal loan rates are fixed, meaning your monthly payment won’t change throughout your repayment term. With federal Direct Subsidized Loans, the Department of Education pays for interest that accrues while you’re in school. Conversely, federal Direct Unsubsidized Loans start accruing interest once the loan is disbursed.

You’ll also have access to a range of repayment options, including income-driven repayment (IDR) plans and student loan forgiveness programs that cancel a portion of your student debt after meeting minimum program requirements.

Lack of Collateral but Strong Repayment Enforcement

Federal student loans come with unusually strong repayment enforcement compared with other types of debt. Even without an asset to seize, the federal government can use powerful tools — such as wage garnishment, tax refund withholding, and Social Security benefit offsets — to collect on defaulted loans. Unlike many other unsecured debts, federal student loans are also difficult to discharge in bankruptcy, which further strengthens repayment expectations.

Options for Deferment, Forbearance, and Forgiveness

Federal student loan deferment allows borrowers to temporarily pause payments during certain qualifying situations, such as unemployment, economic hardship, or enrollment in school at least half-time. During deferment, interest does not accrue on subsidized loans, which helps prevent balances from growing while borrowers regain financial stability. Unsubsidized loans, however, will continue to accrue interest, even though payments are paused. Note that under the “Big, Beautiful Bill,” loans made after July 1, 2027 are no longer eligible for deferments based on unemployment or economic hardship.

Student loan forbearance is another option for borrowers who need temporary relief but do not qualify for deferment. General and mandatory forbearances pause payments for a limited period, but interest accrues on all federal loan types, which can significantly increase the total cost of the loan if left unpaid.

And finally, federal forgiveness programs offer long-term solutions for borrowers who meet certain employment or repayment criteria. Options such as Public Service Loan Forgiveness (PSLF) can eliminate remaining loan balances after a set number of qualifying payments. These programs provide a pathway to manageable repayment and potential debt relief, especially for borrowers working in public service, nonprofit roles, or those whose income makes standard repayment plans challenging.

Managing Your Student Loan Debt

Getting a handle on your unsecured student loan debt can feel challenging as you balance other areas of your life. Below are a few strategies to help you manage your student loans:

• Make in-school interest-only payments. If you can afford to, consider paying off the monthly interest that accrues while your loan is on in-school deferment. This applies to both unsubsidized federal loans and private loans. Making these small but meaningful interest payments can help you avoid interest capitalization (i.e., paying interest on interest) later.

• Track when your loan payments are due. Be aware of your loan due dates and minimum payments each month. Late payments or missing a payment altogether can have a negative effect on your credit score, since loan repayment history is reported to the major credit bureaus.

• See if you qualify for loan forgiveness or loan repayment assistance. The Department of Education offers a few forgiveness and cancellation programs for eligible borrowers with qualifying loans, like the Public Service Loan Forgiveness program for government and nonprofit employees. Some states also offer loan repayment assistance programs to workers in certain professions, like health care, social work, and law.

• Reach out to your loan servicer or lender. If you’re struggling to make your student loan payment, your loan servicer or lender is your best resource. They can guide you through relief options that are accessible to you, whether that’s getting on a different repayment plan or temporary forbearance.

Choosing the Right Repayment Plan

Choosing the right repayment plan can help you effectively manage student loan debt because it directly impacts your monthly payments, total interest costs, and long-term financial stability. The best plan aligns with your income, career goals, and budget, helping you stay current on payments while avoiding unnecessary financial strain.

Options for student loan repayment include a standard plan, an income-driven option, or refinancing or consolidating your loans. Selecting the right structure can make repayment more manageable and prevent your balance from growing due to accrued interest or missed payments.

Refinancing or Consolidating Loans

Borrowers can also consider refinancing or consolidating their student loans. With a student loan refinance, you replace one or more existing loans with a new loan — typically from a private lender — that may offer a lower interest rate, reduced monthly payment, or different repayment term. This option can save money over time, especially for borrowers with strong credit, but it also means giving up federal protections if federal loans are refinanced.

Consolidation, on the other hand, is a federal program that combines multiple federal student loans into a single Direct Consolidation Loan. While student loan consolidation generally won’t lower your interest rate, it can simplify repayment and may help borrowers regain eligibility for certain federal benefits, such as income-driven repayment or loan forgiveness programs.

Recommended: Student Loan Refinancing Calculator

The Takeaway

Both federal and private student loans are categorized as unsecured debt because they do not require collateral such as a car or house. With federal student loans, you gain access to unique protections that typical unsecured private student loans don’t offer.

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

Are student loans considered secured or unsecured?

Student loans are considered unsecured debt, meaning they don’t require collateral from you as a condition of securing the loan. Since there’s no collateral tied to the loan, if you default on the debt, the lender might choose to take you to court in an attempt to collect some or all of the debt.

Is it possible to get a secured student loan?

It may be possible to get a secured student loan, though it’s uncommon. Some private lenders may offer secured education loans that require collateral, such as a savings account or certificate of deposit. These loans can offer lower interest rates, but borrowers risk losing the pledged asset if they fail to repay.

How are federal student loans different from private?

Federal student loans are issued by the government and offer fixed interest rates, income-driven repayment plans, deferment, forbearance, and potential forgiveness programs. Private student loans come from banks or lenders, often require credit checks, may have variable interest rates, and lack the wide range of protections and flexible repayment options federal loans provide.

What happens if you default on an unsecured student loan?

Defaulting on an unsecured student loan can lead to collections, damaged credit, higher costs from fees and interest, and potential legal action. Lenders may garnish wages or place liens depending on state laws. Default also limits future borrowing options, making it harder to access credit or additional student loans.

Do student loans affect your credit like other unsecured loans?

Yes, student loans affect your credit much like other unsecured loans. Your payment history, loan balance, and length of credit history all influence your score. On-time payments can build credit, while missed or late payments can lower your score and remain on your credit report for years.

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