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

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

1. Start With the FAFSA

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

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

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

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

2. Nursing School Scholarships

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

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

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

3. Grants for Nursing School

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

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

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

4. Federal Student Loans

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

Types of Federal Loans

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

Direct Subsidized Loans

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

Direct Unsubsidized Loans

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

Direct PLUS Loans

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

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

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

Student Loan Forgiveness for Nurses

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

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

Student Loan Payment Deferrals

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

Income-Driven Repayment Plan for Nurses

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

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

5. Private Student Loans

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

Private Student Loans vs Federal Student Loans

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

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

Choosing the Right Lender for Nursing School

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

Recommended: Student Loan Payment Calculator

6. Tuition Reimbursement Programs

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

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

7. Hospitals/Employers That Pay for Nursing School

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

Health System Partnerships With Nursing Programs

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

Work Commitments in Exchange for Tuition Coverage

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

8. Getting a Nursing Degree Abroad

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

Cost Comparisons and Accreditation Considerations

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

9. Military Service

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

•   The Army Health Care Education Reimbursement Program

•   Navy Nurse Candidate Program (NCP)

•   Air Force Health Professional Scholarship Program

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

ROTC and Nursing Student Incentives

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

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

10. Nurse Corps Program

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

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

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

Deciding Which Route to Pursue

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

Comparing Costs, Commitments, and Career Goals

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

Combining Multiple Funding Sources

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

Private Student Loans From SoFi

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

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

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

FAQ

Can FAFSA be used for nursing school financial aid?

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

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

Can an employer pay for you to attend nursing school?

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

Can you use private student loans for nursing school?

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

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

What Is the Nurse Corps Loan Repayment Program?

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

Are there loan forgiveness programs specifically for nurses?

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

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

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

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

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Photo credit: iStock/FatCamera

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

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

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

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

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

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

On the Fence About Going to College?

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

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

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

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

Pros of Going to College

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

Higher Earning Potential

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

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

Access to More Jobs

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

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

Value of Learning

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

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

Networking

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

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

Lower Unemployment

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

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

Lower Poverty

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

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

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Healthier

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

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

Better Educated Children

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

More Likely to Save for Retirement

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

Increased Job Stability and Benefits

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

Cons of Going to College

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

Cost of College

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

Cost of Tuition

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

Opportunity Cost of Time Spent Not Working

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

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

High-Paying No-Degree Jobs

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

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

•   Wind turbine technician

•   Electrician

•   Flight attendant

•   Hearing aid specialist

•   Plumber

•   Licensed practical nurse

•   Medical records technician

•   Construction worker

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

Underemployed College Graduates

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

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

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Dropping Out

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

Student Loan Debt and Long-Term Financial Impact

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

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

💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, federal Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and more.

Earning Potential of Different Majors for College Graduates

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

STEM vs Humanities and Liberal Arts

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

ROI by Field of Study

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

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

Is College Right for You?

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

Factors to Consider Based on Career Goals and Finances

Key questions to ask include:

•   Does your intended career require a degree?

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

•   How much debt would you need to take on?

•   What is the expected salary in your chosen field?

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

The Role of Passion and Personal Interests

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

Alternatives to College

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

Trade School

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

Community College

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

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

Industry-Specific Education Programs

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

Learning on the Job

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

Apprenticeships and Certifications

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

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

The Takeaway

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

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

When it comes to paying for college, students may rely on a combination of cash savings, scholarships, grants, and federal and private student loans.

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

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

FAQ

What are the biggest reasons for not going to college?

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

What are the most important reasons to attend college?

The most important reasons to go to college include:

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

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

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

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

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

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

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

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

Can you succeed financially without going to college?

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

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

Top alternatives to a traditional four-year degree include:

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

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

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

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

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

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Photo credit: iStock/FG Trade

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

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

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

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

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

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

SOISL-Q126-003

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It may seem as if droves of college students collect diplomas every year, but of the students who start college, how many actually graduate?

The most recent data from the National Student Clearinghouse (NSC) Research Center reports that the six-year graduation rate for bachelor’s-degree-seeking full-time undergraduate students who enrolled in fall 2019 was 61.1%.

The graduation rate refers to the percentage of students who complete their program within 150% of the published time for that program. The NSC Research Center’s averages include students who transferred institutions, but individual schools’ figures don’t include those students. It’s important not to confuse graduation rates with retention rates, which refer to the percentage of students who continued at a particular school the next year.

Here, we’ll walk you through what the college graduation rate can tell you about a school and why it’s important, as well as outline a good graduation rate. We’ll also break down graduation rates by state and college, discuss some reasons why students might not graduate, and let you know how to overcome some of those obstacles.

What Do College Graduation Rates Tell Us?

If you’re a prospective student, understanding the difference between graduation rates and retention rates leaves you better prepared to work out how the schools on your list compare. Checking out the graduation rate of your first-choice college gives you a definite indication of whether that school is better or worse than average at getting students to the finish line. Average graduation rates also tell you which types of institutions are best at that key task. Based on the available statistics, private, nonprofit institutions graduate students at the highest rate.

Why Is Knowing the Graduation Rate Important for Selecting a College?

When it comes to researching colleges, different things matter to different students. Athletes may want to know more about athletic programs. English majors may want to know how many professors are published writers.

However, among all the different factors you can research, the graduation rate remains one of the most important for all prospective students to understand.

Why? The graduation rate not only lets you know how many students graduate in a timely manner but also serves as a gauge of other important points, such as student satisfaction. Still, it’s not the only metric you’ll want to consider when you’re choosing a college. Other priority considerations include teacher-to-student ratio, retention rate, loan default rates (which could indicate low incomes after graduation), and selectivity.

Two trusted websites compile information on graduation rates for individual schools: College Navigator and College Results Online.

•   College Navigator: College Navigator compiles information from about 7,000 colleges and universities across the United States. The site breaks down both retention rates and graduation rates, and you can also filter rates by race/ethnicity and gender.

•   College Results Online: College Results Online also lists both graduation and retention rates for institutions. You can cross-index certain peer institutions against each other to compare rates.

What Is a Good Graduation Rate for a College?

The best graduation rates in the U.S. are over 90%, with many of the Ivy League schools falling into this bracket. For example, let’s take a look at a few graduation rates based on College Navigator data for the cohort that enrolled in fall 2017:

•   Harvard University: 97%

•   Yale University: 96%

•   Cornell University: 95%

You can also find high graduation rates within highly selective liberal arts colleges:

•   Claremont McKenna College: 95%

•   Amherst College: 93%

•   Davidson College: 92%

It’s important to remember that since these highly selective schools only admit students with top-tier credentials, they naturally attract some of the most driven students on the planet, resulting in a high graduation rate.

So, what’s a good graduation rate for a college? Do these figures mean that a college with a graduation rate in the 80s or even the 70s isn’t a good school or that it isn’t the right school for you? Absolutely not. As we mentioned above, there are other factors in the mix as well, including your personal preferences and interests. The right fit for you may be a school with a 70% graduation rate. The better the fit, the more likely you are to graduate on time.

Lowest College Graduation Rates in the United States

Unfortunately, the colleges with the lowest graduation rates in the U.S. aren’t highly publicized. However, if, during your own research, you see a school that graduates students at or below 60%, you may want to probe the admissions counselor at that college for the reasons why rates are so low and find out more about how the college plans to improve.

Average College Graduation Rates in the United States

If we dig a bit further into the 2025 NSC Research Center report, it states that the average college graduation rate for the fall 2019 cohort was:

•   70.9% at public four-year institutions

•   74.6% at private nonprofit institutions

•   35.9% at private for-profit four-year institutions

Overall, 58.1% of male students and 64.3% of female students graduated within six years, with female students having a higher graduation rate at the following types of institutions:

•   Public institutions (74.3% female versus 67.7% male)

•   Private nonprofit institutions (77.6% female versus 71.3% male)

The National Student Clearinghouse (NSC) Research Center calculates graduation rates by tracking cohorts of first-time, degree-seeking college students to compile its report. Using data from over 3,750 colleges, it considers completion the earning of a certificate, associate, or bachelor’s degree, which could be at the starting school or any other institution.

College Graduation Rates by State

Here are the college graduation rates for the fall 2019 cohort by state, according to the NSC Research Center:

State	Completion Rate
Vermont	73.1%
Massachusetts	71.5%
New Hampshire	70.8%
Rhode Island	70.8%
Pennsylvania	70.0%
Iowa	70.0%
Wisconsin	69.7%
South Dakota	69.6%
Minnesota	68.8%
Indiana	67.7%
Virginia	67.4%
North Dakota	66.3%
Ohio	66.2%
Connecticut	65.9%
North Carolina	65.8%
South Carolina	64.5%
New York	64.2%
Nebraska	63.9%
Illinois	63.1%
Delaware	62.7%
Florida	62.7%
Kentucky	62.4%
Michigan	62.1%
Georgia	61.9%
Missouri	61.9%
Kansas	61.8%
Colorado	61.7%
Maine	61.1%
New Jersey	61.0%
Mississippi	60.7%
West Virginia	60.4%
Maryland	60.1%
Arkansas	59.9%
Wyoming	59.7%
Utah	59.5%
Alabama	59.3%
Tennessee	58.2%
Montana	56.6%
Washington	56.5%
Idaho	56.5%
Texas	56.0%
Oregon	55.3%
California	54.8%
Arizona	54.8%
Louisiana	54.2%
Oklahoma	54.0%
Hawaii	53.3%
New Mexico	48.3%
Nevada	46.8%
Alaska	37.2%

Numbers of College Graduates in the 21st Century

In the past 20 or so years, the number of college graduates has increased by a huge amount. According to information published by the Education Data Initiative, in 2000, approximately 1.24 million students graduated from college with a bachelor’s degree. In 2025, that number reached nearly 2.17 million.

Reasons Why College Students Don’t Graduate

Let’s turn the tables a bit and take a look at a few reasons why students might not graduate. Depending on the student, these may include issues such as the high cost of tuition, trying to balance work and school, or poor academic performance.

Cost

Increasing price tags aren’t a new reason for students to drop out of school. When it gets too expensive, they may feel there’s no solution but to leave. The 2025 affordability report of the National College Attainment Network found that for the average in-state student in the 2022-2023 academic year, a little over a third of public bachelor’s-granting institutions were affordable. Researchers based this on total tuition and living costs and an emergency expenses constant measured against grants, federal loans, federal work study income, an estimated family contribution, and estimated summer wages.

Recommended: What Is the Average Cost of College Tuition?

Balancing Work and School

Many undergraduates work part-time jobs to help pay their way through college. A lot of them get stuck in the quagmire of trying to keep up with both work and school, which can be a challenging balancing act. Many seasonal jobs for college students exist, which means you may be able to get a job during the summer instead of working during the school year.

Recommended: 3 Summer Jobs Ideas for College Students

Transferring

Transferring colleges sometimes means credits can get lost in translation. When colleges force transfer students to retake classes, it not only costs those students more financially, but they also have to spend extra time pursuing their degree. This sometimes means that students can face difficulty getting enough credits to graduate.

Poor Grades

Sometimes, students simply can’t make the grade. Even if it happens during just one semester, it can cause them to shy away from college altogether. In particular, first-generation college students, low-income students, and minority students are vulnerable and may question whether they really belong in college.

Being Denied a Student Loan

Being denied a student loan or other types of financial aid can be a huge deterrent to continuing in college. If you haven’t secured enough financial aid, remember that there are ways around it — including seeking a loan through a different lender.

Overcoming the Obstacles as a College Student

What can you do to overcome these obstacles and successfully graduate from college? Let’s find out. Here are a few things you can do to help you stay the course:

•   Get organized with everything — schoolwork, athletics, homework, and anything else that takes your time and attention.

•   Get support from family and friends.

•   Create healthy habits. Eat nutrient-dense meals, get enough sleep, and stay healthy.

•   Carefully consider the best ways to pay for college, and focus on managing your money.

•   Get to know professors and academic support professionals at your college or university.

•   Work on your time management skills so you have the time you need for important assignments.

•   Take care of your mental health. If you’re struggling to balance the many priorities of being a college student, reach out to family or friends for help. If you need additional support, contact your campus’s health and wellness center to see what counseling resources are available to students.

•   If you’re attending community college to begin with, investigate transfer options early on so you know how to make the transition as smooth as possible.

Ways to Fund College

Making sure you have a concrete plan to pay for college is one of the best ways to make sure you successfully graduate. Let’s walk through a few tips to make sure you have all your ducks in a row.

•   Fill out the Free Application for Federal Student Aid (FAFSA®). This is the first step in applying for federal financial aid, including grants, scholarships, and low-interest-rate federal student loan options.

•   Search for scholarships. Ask the college or university you plan to attend about the scholarships they offer. Don’t forget to search around in your community as well.

•   Get a work-study job. If you qualify for work-study, this can be an opportunity to earn some money for college expenses. In this federal program, you work to earn money, and your school pays you for that work, which it must do at least monthly.

•   Look into private loans. If you need to fill the gap between scholarships, grants, and federal student loans, look into private loans to help you make it across the graduation stage. These may lack the borrower protections afforded to federal student loans (such as deferment options or income-driven repayment plans) and are therefore generally considered only after you’ve exhausted other financing sources.

The Takeaway

A school’s graduation rate reflects the percentage of students who graduate within 150% of the published time frame. This is different from a school’s retention rate, which measures the percentage of students who remain at that school from year to year. A school’s graduation rate can be an informative benchmark as you evaluate and compare schools during the application process.

If you are a current college student, you can do a lot to make sure you stay the course, including taking care of yourself, using scholarships and grants to your advantage, getting academic help, and making sure (if necessary) that you have the right private loans to make it all happen.

Ready to find private student loans to make sure you get to throw your cap at graduation? Visit SoFi and learn more about private student loans and the low rates we have to offer. Our friendly experts can also help you decide on your best course of action.

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 is the average college graduation rate in the U.S.?

According to the NSC Research Center Yearly Progress and Completion report published in December 2025, the average graduation rate for the 2019 U.S. cohort was 61.1%. This rate can help you evaluate prospective institutions, comparing individual college graduation rates to the national average.

Which schools have the best graduation rates?

Private nonprofit schools tend to have the highest graduation rates, followed closely by public schools. Private for-profit schools have lower rates, while Ivy League universities, such as Harvard and Yale, have particularly high rates.

How can students increase their chances of graduating?

Key reasons why students leave college without graduating include cost, academic difficulties, and administrative problems with transferred credits or loans. The best way to avoid these problems is to plan carefully and stay organized. Consider different colleges and their benefits, look at various options for funding, and build a network for practical and emotional support.

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Photo credit: iStock/digitalskillet

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

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

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

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

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

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

SOISL-Q126-016

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Attending college in the U.S. can be expensive. In addition to tuition and fees, students may need to cover the cost of room and board, along with other expenses, such as books and lab fees.

To help students going to college manage their budget, it’s important that they carefully weigh their options when it comes to public and private schools. In-state tuition at a public college can be far cheaper than out-of-state tuition or a private nonprofit school.

College Tuition in the United States

The United States has some of the world’s highest tuition costs, and prices have risen steeply over time, driven in part by increasing demand and the availability of loans. More recently, however, factors such as the increased availability of financial aid have kept average net tuition prices relatively stable.

Colleges have also added amenities to their campuses to help attract higher-paying students. While appealing to many students, this has a knock-on effect on the cost of attendance. Schools are also spending more on administration.

Average College Tuition Costs

The cost of college varies depending on whether students choose to attend public or private institutions. Public schools generally have different costs for in-state and out-of-state tuition.

The average tuition cost for 2025-2026 for an in-state student at a public four-year school is $9,750 per year. A student attending a public four-year program from out of state can expect to pay an average of $28,386 per year, according to the Education Data Initiative.

Students who wish to attend a private nonprofit four-year college will pay an average of $38,421 per year.

In addition to tuition and fees, students also have to cover other costs, such as room and board and transportation. These additional expenses will vary depending on whether you’re living on or off-campus, but they can add more than $10,000 to the annual cost of attending college. The average annual cost of attendance for students attending a public four-year in-state program is $27,146. Out-of-state students face an average of $45,708 per year. And for students attending a private nonprofit four-year program, the average annual cost of attendance is $58,628.

Recommended: What Is the Average Cost of College Tuition?

States With the Cheapest College Tuition

College tuition prices for public four-year institutions vary widely by state. Generally speaking, public colleges in the South and the West are the cheapest to attend. Colleges in the Northeast are the most expensive. Vermont has the most expensive in-state tuition and fees, topping out at an annual average of $19,223. New Hampshire is a close second at $18,839. To learn more, take a look at the annual study published by the College Board that tracks trends in college pricing and financial aid.

Here’s a look at the states with the cheapest in-state tuition and fees at four-year flagship university programs over the 2025-2026 school year.

Florida

University of Florida
In-state tuition and fees: $6,380
Out-of-state tuition and fees: $30,900

North Carolina

University of North Carolina at Chapel Hill
In-state tuition and fees: $7,020
Out-of-state tuition and fees: $43,152

Wyoming

University of Wyoming
In-state tuition and fees: $8,245
Out-of-state tuition and fees: $24,865

Montana

University of Montana
In-state tuition and fees: $9,188
Out-of-state tuition and fees: $34,312

Idaho

University of Idaho
In-state tuition and fees: $9,400
Out-of-state tuition and fees: $28,636

South Dakota

University of South Dakota
In-state tuition and fees: $9,687
Out-of-state tuition and fees: $13,299

Mississippi

University of Mississippi
In-state tuition and fees: $9,990
Out-of-state tuition and fees: $30,150

Utah

University of Utah
In-state tuition and fees: $10,004
Out-of-state tuition and fees: $31,748

Georgia

University of Georgia
In-state tuition and fees: $10,034
Out-of-state tuition and fees: $30,878

Nevada

University of Nevada, Reno
In-state tuition and fees: $10,309
Out-of-state tuition and fees: $28,941

Arkansas

University of Arkansas
In-state tuition and fees: $10,496
Out-of-state tuition and fees: $29,146

West Virginia

West Virginia University
In-state tuition and fees: $10,752
Out-of-state tuition and fees: $30,432

Paying for College

Because the price of college tuition, fees, and room and board can be so high, many students have to take out student loans and apply for grants and scholarships to make college affordable. Students may take out federal loans or private loans to help them pay for school. They’ll have to repay these loans through a series of monthly payments with interest.

The U.S. Education Department offers federal loans under the William D. Ford Federal Direct Loan Program. This program includes four types of federal loans:

•   Direct Subsidized Loans are available to undergrads who demonstrate financial need. The Education Department covers the interest on these loans while the students are enrolled in school at least half-time.

•   Direct Unsubsidized Loans are available to undergrads, graduate students, and professional students and are not based on need.

•   Direct PLUS Loans are for graduate and professional students and parents of dependent undergrads. Eligibility is not based on financial need. Effective July 1, 2026, new PLUS loans will no longer be available for grad and professional students. However, borrowers who already received a grad PLUS loan can continue borrowing under current terms through the 2028-2029 school year.

•   Direct Consolidation Loans allow students to combine federal loans into a single loan.

To apply for federal student loans and other forms of federal aid, students must fill out the FAFSA®, or Free Application for Federal Student Aid, each year.

Recommended: FAFSA Guide

Private student loans may be available through private lenders, such as banks and online lenders. These institutions set their own terms, interest rates, and loan amounts. When determining individual rates and terms, lenders will generally evaluate the applicant’s credit history, among other factors. Private student loans are typically considered a last resort when it comes to financing college because they aren’t required to include the same borrower benefits or protections (such as income-driven repayment options) as federal student loans.

There are also various sources of financial aid that can help students pay for school. This aid can come from federal, state, school, and private sources.

•   Grants, such as federal Pell Grants, are a form of financial aid that doesn’t need to be paid back, unlike student loans.

•   Scholarships are funds offered to students, often based on academic performance, an area of study, or special talents. Scholarships also do not generally need to be repaid.

•   Work-study programs allow students to earn money while they’re in school. Students may qualify for the federal work-study program based on financial need.

•   Many schools offer financial aid or scholarships.

The Takeaway

College can be a huge expense, but there are also a lot of benefits of a college education. As you’re considering schools, it’s important to evaluate all of your options and think seriously about choosing one that’s in your budget, as well as finding manageable ways to pay for it. That may mean attending a public school in the state you live in. And if you live in one of the states with the cheapest in-state tuition, you may pay less than $10,000 a year to go to school.

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

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

FAQ

How much does college cost on average in the US?

The estimated average cost of attendance for one year of college (living on campus) is $27,146 for in-state students at public four-year schools, $45,782 per year for out-of-state students at public four-year schools, and $58,628 for students at private nonprofit schools.

What state has the cheapest tuition?

States with the cheapest in-state tuition include Florida, Wyoming, and Montana. For out-of-state students, Florida, South Dakota, and North Dakota have some of the cheapest tuition.

What funding options are available?

By filling in the FAFSA, students can apply for federal loans. Direct Subsidized Loans are based on need, while Direct Unsubsidized Loans and Direct PLUS Loans are not need-based, and Direct Consolidation Loans allow students to combine federal loans. Further options may include grants, scholarships, work-study programs, and school-based financial aid.

---

Photo credit: iStock/Bet_Noire

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

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

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

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

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

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

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

SOISL-Q126-012

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Graduate school can be an exciting step toward advanced knowledge, professional growth, and long-term career opportunities, but it often comes with a high price tag. Tuition, fees, research costs, and living expenses can quickly add up, leaving many students searching for ways to fund their education without accumulating excessive debt. One of the most prestigious and flexible forms of graduate funding is a graduate fellowship.

A graduate fellowship is a competitive award that provides financial support to students pursuing master’s, doctor, or postdoctoral studies. Unlike loans, fellowships do not need to be repaid, and unlike assistantships, they typically do not require a work commitment from the recipient. Fellowships may be offered by universities, government agencies, private foundations, or corporations, and they are often awarded based on academic merit, financial need, and research potential.

As with other scholarships and grants, there’s often steep competition for these awards. Here’s a guide to graduate fellowships and how to go about applying for one.

Internal vs External Graduate School Fellowships

Graduate fellowships generally fall into two broad categories: internal and external. Internal fellowships are awarded directly by a university or academic department. These fellowships are often tied to admission decisions, meaning applicants are automatically considered when they apply to a graduate program. Internal fellowships may be funded by the institution itself, alumni donations, or departmental endowments.

External fellowships, on the other hand, are awarded by organizations outside the university. These include government agencies, nonprofit foundations, professional associations, and private corporations. External fellowships tend to be highly competitive but can offer generous funding, greater prestige, and more flexibility in how funds are used.

Both types of fellowships can be valuable. Internal fellowships may be easier to access and better aligned with a specific program, while external fellowships can provide broader recognition and sometimes allow students to choose where they want to study.

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

Types of Graduate School Fellowships

Graduate fellowships come in several forms. Each type is designed to support students with different backgrounds, goals, and academic interests.

Merit-Based Fellowships

Merit-based fellowships are awarded primarily on academic excellence and demonstrated achievement. Selection committees may consider undergraduate and graduate GPA, standardized test scores, publications, conference presentations, leadership experience, and overall academic promise.

These fellowships are common in research-intensive fields and are often used to attract top students to competitive programs. Because they focus on achievement rather than financial circumstances, merit-based fellowships can be highly competitive, especially at prestigious universities.

Need-Based Fellowships

Need-based fellowships are awarded to students who demonstrate financial need. Applicants may be required to submit financial documentation, such as income statements or information from financial aid forms. These fellowships are designed to reduce financial barriers and help students from lower-income backgrounds pay for graduate school.

While need-based fellowships may still consider academic standing and research focus, financial circumstances play a key role in the selection process.

Research and Project-Based Fellowships

Research and project-based fellowships support students working on specific research topics, creative projects, or applied initiatives. These fellowships are especially common in STEM fields, social sciences, humanities research, and public service-oriented disciplines.

Applicants are often required to submit a detailed research proposal outlining their objectives, methodology, timeline, and expected outcomes. These fellowships not only provide funding but also help students build research credentials and professional networks.

Applying for a Graduate Fellowship Program

Applying for a graduate fellowship requires careful planning, attention to detail, and a strong understanding of what selection committees are looking for.

Preparing a Strong Application Package

A competitive fellowship application typically includes transcripts, a resume or curriculum vitae, personal or research statements, and letters of recommendation. Each component should reinforce a consistent narrative about your academic goals, achievements, and potential impact.

Start preparing well in advance. Review application instructions carefully, follow formatting guidelines exactly, and ensure that all required materials are submitted by the deadline. Small errors or missing documents can disqualify an otherwise strong application.

Securing Strong Letters of Recommendation

Letters of recommendation play a crucial role in fellowship decisions. Choose recommenders who know your work well and can speak in detail about your academic abilities, research skills, and character. Faculty members, research supervisors, or professional mentors are often ideal choices.

Provide your recommenders with ample time and supporting materials, such as your resume, draft statements, and information about the fellowship. This allows them to write thoughtful, personalized letters that strengthen your application.

Tailoring Your Personal Statement

Your personal statement or statement of purpose is your opportunity to explain why you are a strong candidate and how the fellowship aligns with your goals. You generally want to avoid generic essays. Instead, tailor each statement to the specific fellowship, emphasizing values, missions, or priorities highlighted by the funding organization.

A strong statement clearly articulates your academic interests, career goals, and the broader impact of your work. Try to be concise, authentic, and focused on how the fellowship will enable your success.

What You Need to Know About Fellowships for Graduate Students

If you’re hoping to use a fellowship to help cover the cost of a graduate degree, here are some practical considerations to keep in mind.

Trump Administration’s Impact on Graduate Fellowships

Federal funding priorities can influence the availability and structure of certain graduate fellowships. During the Trump administration, some research funding areas experienced budget uncertainty or shifting priorities, particularly in environmental science, public health, and social research.

While many fellowship programs remained intact, policy changes highlighted the importance of diversifying funding sources. If you’re in or looking to go to graduate school, it’s a good idea to stay informed about how political and economic factors may affect fellowship availability, especially for federally funded programs.

Tax Implications of Fellowship Funding

Fellowship funding may be taxable, depending on how the funds are used. Generally, money applied directly to tuition and required fees is not taxable, while stipends used for living expenses (e.g., room and board, travel, non-required books, and personal computers) may be considered taxable income.

Because tax rules can be complex, it’s a good idea to review IRS guidelines and consider consulting a tax professional to avoid unexpected tax liabilities.

Balancing Fellowships With Other Financial Aid

Receiving a fellowship can affect eligibility for other forms of financial aid, such as grants and graduate student loans. Some institutions adjust financial aid packages when a student receives external funding.

Before accepting a fellowship, it is wise to speak with the university’s financial aid office to understand how different funding sources interact and whether combining them is permitted.

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Strategies for Applying to a Graduate Fellowship Program

Here are some logistical considerations to keep in mind when considering and applying for fellowships opportunities.

Early Deadlines

Many applications for graduate fellowships are due in the fall for the following academic year, almost a full year in advance.

Staying organized and tracking deadlines is essential. Missing a deadline can mean waiting an entire year for the next opportunity.

Funding Duration

Fellowships vary in length. Some provide one year of support, while others offer multi-year funding contingent on satisfactory progress. Understanding the duration of funding is key to long-term financial planning.

Competition

Graduate fellowships are often highly competitive, particularly nationally recognized programs. Acceptance rates can be low, but competition shouldn’t discourage applicants. Applying to multiple fellowships can improve your overall chances of success.

Part-Time and Online Graduate Programs

Not all fellowships are available to part-time or online students. Many funding programs require full-time enrollment and on-campus participation. Students in nontraditional programs should carefully review eligibility requirements.

Postdoc Fellowships

For doctoral graduates, postdoctoral fellowships provide funding to continue research, public work, and gain professional experience. These fellowships can be a stepping stone to academic or research-focused careers.

Long-Term Career Prospects

Fellowships can bolster your resume and get the attention of prospective employers. As a graduate fellow, you’ve shown you’re motivated, disciplined, and serious about your focus of study. You’ve also shown you’re highly qualified and stood out from a pool of other candidates.

Graduate and postdoctoral fellows can go on to have successful careers as researchers, university professors, expert scholars, writers, and authors. They can also work in their specialty for a corporation, government agency, or at a nonprofit organization.

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How Fellowships Compare to Assistantships and Scholarships

Graduate students often choose between fellowships, assistantships, and scholarships, and each works in different ways.

Key Differences in Funding, Expectations, and Flexibility

Fellowships typically offer the most flexibility, as they often offer substantial funding with few or no work obligations. Assistantships provide funding in exchange for teaching or research duties. Graduate school scholarships are usually smaller awards and may be based on merit or need. They typically don’t have a service requirement and are often used to supplement other funding sources.

Which Option Is Best for Your Goals?

The best funding option depends on your priorities. Students focused on research independence may prefer fellowships, while those seeking teaching experience may benefit from assistantships. Many students combine funding types to create a balanced package that supports financial and professional goals.

The Takeaway

Graduate fellowships are one of the most powerful tools for funding advanced education without accumulating debt. They offer financial support, academic freedom, and professional prestige, making them highly sought after by graduate students across disciplines.

By understanding the different types of fellowships, preparing strong application materials, and planning for practical considerations like taxes and funding duration, students can significantly improve their chances of success. While the application process can be competitive and time-consuming, the long-term benefits of securing a graduate fellow often make the effort worthwhile.

With early preparation, strategic planning, and persistence, a graduate fellowship can be a powerful asset throughout graduate school and beyond.

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FAQ

Can I have more than one fellowship?

You can apply for multiple fellowships, but whether or not you can accept more than one will depend on the funder’s specific rules. For example, you may not be able to accept two fellowships with award periods that overlap or that are funded by the same organization. Before accepting any award, always confirm the rules regarding concurrent funding with the sponsoring entity.

Is a fellowship prestigious?

Yes, a fellowship is highly prestigious. It signifies that the recipient has been recognized for exceptional academic merit, research potential, or leadership by a competitive selection process, often involving national or international organizations. Receiving a fellowship can significantly enhance a student’s resume, open doors to professional networks, and validate their expertise and commitment to their field of study.

How do you find fellowships for graduate school?

To find graduate fellowships, start by checking with your university’s graduate school or academic department. They often manage internal awards and maintain lists of external ones. In addition, a number of universities (including Duke, Harvard, and UCLA) maintain public databases that any student can use to search for external fellowships. Also check the websites of foundations relevant to your field and online databases like ProFellow.

Do fellowships cover full tuition and living expenses?

Fellowships vary in what they cover. While some prestigious or large-scale fellowships may cover all tuition and fees, and provide a generous stipend for living expenses, others may only cover a portion of tuition or offer a modest stipend. The scope of funding depends entirely on the specific fellowship and the sponsoring organization. Always review the award letter and fellowship guidelines to understand exactly what costs are covered.

Can international students apply for graduate fellowships?

Yes, many graduate fellowships are open to international students. While many U.S. government-sponsored fellowships are restricted to citizens, there are numerous institutional and private opportunities available. It’s important to review the specific guidelines for each award.

Note that the Trump administration’s restrictive visa policies, social media vetting, and travel bans have reduced overall international enrollment at U.S. universities. This may create a strain on university budgets and, consequently, limit the availability of fellowships and financial aid for all graduate students.

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